Question
ABC currently pays an annual dividend of $1 per share (assume dividends are paid at the end of each year). Investors expect the dividend to
ABC currently pays an annual dividend of $1 per share (assume dividends are paid at the end of each year). Investors expect the dividend to stay at $1 per share for two years and then grow at a constant rate of 4% per year after year 2. ABC equity beta is 0.8. The risk free rate is 1% and market risk premium is 5%. What should ABC's current price per share be?
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Property Finance
Authors: David Isaac
2nd Edition
0333987144, 978-0333987148
