Question
Ameritech Corporation paid dividends per share of $3.56, and dividends are expected to grow 5.5% a year forever. The stock has a beta of 0.90,
Ameritech Corporation paid dividends per share of $3.56, and dividends are expected to grow 5.5% a year forever. The stock has a beta of 0.90, and the Treasury bond rate is 6.25%. (Risk premium is 5.5 %.)
What is the value per share, using the stable growth model?
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New Issues In Financial Institutions Management
Authors: F Fiordelisi, P Molyneux, D Previati
2010th Edition
0230278108, 978-0230278103
