Question
A stock just paid an annual dividend of $6.3. The dividend is expected to grow by 6% per year for the next 4 years. In
A stock just paid an annual dividend of $6.3. The dividend is expected to grow by 6% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 24 and the payout ratio to be 60%. The required rate of return is 8%.
1.What is the value of the stock?
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
