Question
An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.84 $2.54
An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.84 $2.54 $2.95 The analyst notes that American Dream stock has a required return of 10.32%. The analyst projects that dividends will grow at a constant rate of 2.00% per year after year 3. What is the current price of the stock if his assumptions are correct?
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
