Question
ABC Corporation's common stock dividend yield is 3.45%, it just paid a dividend of $2.55, and is expected to pay a dividend of $2.87 one
ABC Corporation's common stock dividend yield is 3.45%, it just paid a dividend of $2.55, and is expected to pay a dividend of $2.87 one year from now. Dividends are expected to grow at a constant rate indefinitely. What is the required rate of return on ABC stock?
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To calculate the required rate of return also known as the cost of equity or discount rate on ABC Co...
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
