Question
A stock just paid a dividend of $1.00. This dividend is expected to grow at a rate of 8% for the next 5 years. Then
A stock just paid a dividend of $1.00. This dividend is expected to grow at a rate of 8% for the next 5 years. Then it will level off and grow at a rate of 5% indefinitely. For the next 3 years, R = 8%. R = 7% for the following 3 years and then R = 6% indefinitely.
What is the expected stock price today?
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Investing In Fixed Income Securities Understanding The Bond Market
Authors: Gary Strumeyer
1st Edition
0471465127, 9780471465126
