Question
ABC Company has just paid a dividend of $1.94. They expect the dividend to grow by 6 percent for the next two years and then
ABC Company has just paid a dividend of $1.94. They expect the dividend to grow by 6 percent for the next two years and then 4 percent forever. If the current required rate of return is 9%, what is the fair current price for this stock? What if ABC Company above expects no growth in their dividend?
What would the fair price of the stock be?
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The Engineers Cost Handbook Tools For Managing Project Costs
Authors: Richard E. Westney
1st Edition
0824797965, 978-0824797966
