Question
ABC company issued ABC stock. The stock has a face value of $30. The company currently pays a dividend of $4 per share. It is
ABC company issued ABC stock. The stock has a face value of $30. The company currently pays a dividend of $4 per share. It is estimated that the company’s dividend will grow at a constant rate of 10%. The stock’s required rate of return is 12%. What is your estimation of the stock’s current price?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
10th edition
978-1337902571, 1337902578, 978-1337911054, 1337911054, 978-0324272055
