Question
A stock just paid an annual dividend of $7.9. The dividend is expected to grow by 4% per year for the next 4 years. In
A stock just paid an annual dividend of $7.9. The dividend is expected to grow by 4% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 19 and the payout ratio to be 60%.
The required rate of return is 8%.
Attempt 1/10 for 10 pts.
Part 1
What should be the current stock price?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti
2nd Edition
0073523097, 9780073523095
