Question
A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = 2.75), and it should continue to
A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = 2.75), and it should continue to grow at a constant rate of 5% a year. If its required return is 15%, what is the stock/s expected price 4 years from today?
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Quantitative Investment Analysis
Authors: Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, David E. Runkle
3rd edition
111910422X, 978-1119104544, 1119104548, 978-1119104223
