Question
A stock is expected to pay a dividend of $0.75 at the end of the next quarter. The expected dividend growth rate is 2% per
A stock is expected to pay a dividend of $0.75 at the end of the next quarter. The expected dividend growth rate is 2% per quarter and the appropriate rate of return on this stock is 15%, compounded quarterly (r4=15%). How much is the intrinsic value of this stock?
43.71
$5.88
$42.86
$5.77
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
