Question
An analyst for ZZZ Trust is analyzing the value of ABC stock, which currently does not pay dividends. He believes ABC will start paying a
An analyst for ZZZ Trust is analyzing the value of ABC stock, which currently does not pay dividends. He believes ABC will start paying a quarterly dividend of $0.82 per share in 2 years (8 quarters from now) and that it will remain constant forever. In addition, he estimates his required return on ABC to be 10.6% APR compounded quarterly. What value would he place on a share of ABC stock?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
