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A stock paid a dividend earlier today of $3. The annual dividend is expected to grow 10% for the next 2 years (one year from
A stock paid a dividend earlier today of $3. The annual dividend is expected to grow 10% for the next 2 years (one year from now, and two years from now), then growth will be a constant 2% starting the third year. If investors require a rate of return of 8% what should the stock price be today?
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Answer To determine the stock price today we need to calculate the present value of all the expected ...
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
