Question
An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.50 $2.39
An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.50 $2.39 $3.11 The analyst notes that American Dream stock has a required return of 10.40%. The analyst projects that dividends will grow at a constant rate of 5.00% per year after year 3. What is the current price of the stock if his assumptions are correct?
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The Handbook Of International Trade And Finance
Authors: Anders Grath
4th Edition
0749475986, 978-0749475987
