Question
ABC company will pay a dividend of $2.65 per share in year one, $3.45 per share in year two, and $4.25 per share in year
ABC company will pay a dividend of $2.65 per share in year one, $3.45 per share in year two, and $4.25 per share in year three. In year four, you think that the ABC company will get bought out at $58.00 per share and all the ABC company stock owners will be paid $58.00 per share at the closing. The required return rate is 8.4%. What is the present value of ABC company stock?
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Better Than Alpha Three Steps To Capturing Excess Returns In A Changing World
Authors: Christopher M. Schelling
1st Edition
1264257651,126425766X
