Question
The last dividend paid by ABC company is 8 TL. The dividend is expected to grow by 5% next year, 4% in the second year,
The last dividend paid by ABC company is 8 TL. The dividend is expected to grow by 5% next year, 4% in the second year, % 5 third year and 3% in the following years. If the expected return rate of investors (k) is 14%. What is the value of this stock today (PO)?
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Step: 1
Let D0 be the amount of dividend paid and D1 be the amount of expected dividend of firs...
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Microeconomics
Authors: Jeffrey M. Perloff
8th edition
134519531, 978-0134519531
