Question
Ackert Company's last dividend was $3.00. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected
Ackert Company's last dividend was $3.00. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (r s) is 12.0%. What is the best estimate of the current stock price?Do not round intermediate calculations.
- $88.92
- $71.71
- $78.88
- $80.31
- $68.84
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
