Question
A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share D1 $4 , and
A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share D1 $4 , and it is expected to grow at some constant rate gL throughout time. The stocks required rate of return is 14% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL?
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
