Question
ABC corp plans to pay $1.8 in dividends next year. you believe the company grow dividends by 12% per year for the following 4 years,
ABC corp plans to pay $1.8 in dividends next year. you believe the company grow dividends by 12% per year for the following 4 years, after which dividens will grow at 6% per year. the beta for abc corp is 1.15 and the market risk premium is 9% with risk free rate of 2.5%.
What is ABC corp's required rate of return (use CAPM formula)?
what will be the price of AMZN today according to dividend discount model?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
