Question
ABC Ltd is currently paying a dividend of $3 per share. If investors expect this dividend to be maintained forever and require a rate of
ABC Ltd is currently paying a dividend of $3 per share. If investors expect this dividend to be maintained forever and require a rate of return of 11 percent on the investment. What is the value of each ABC share today?
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
