Question
ACME Inc. just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant growth rate of
ACME Inc. just paid a dividend of $2.00 per share on its stock. The dividends are expected to grow at a constant growth rate of 3.5% per year, forever. If an investor wants a return of 9% on this stock
(a) what is the current price? (b) what will be the price in 4 years? (c) what will be the price in 20 years?
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The Oxford Handbook Of IPOs
Authors: Douglas Cumming, Sofia Johan
1st Edition
0190614579, 978-0190614577
