Question
A stock paid a $4.2 dividend last year. Dividends are expected to grow at 6% forever. (1) Calculate the value of the stock if the
A stock paid a $4.2 dividend last year. Dividends are expected to grow at 6% forever.
(1) Calculate the value of the stock if the required return on equity is 12%.
(2) If the stock value is $65 and dividends are expected to grow constantly. What is the required return on equity?
please show work and explain
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
