Question
A stock pays a constant dividend of $4/share every quarter (every 3 months) and a dividend was just paid. If the market's required return on
A stock pays a constant dividend of $4/share every quarter (every 3 months) and a dividend was just paid. If the market's required return on this stock is 13% PER YEAR, what is the market value of the stock?
Is this 13% return an APR (compounded quarterly) or an EAR?
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Financial Management For Public Health And Not For Profit Organization
Authors: Steven A. Finkler
3rd International Edition
0138152772, 9780138152772
