Question
As in the previous question, a Stock just paid a dividend of $2.00 per share. The required return on stocks of this risk is 18.5%.
As in the previous question, a Stock just paid a dividend of $2.00 per share. The required return on stocks of this risk is 18.5%. The company has a policy of paying out 2/3 of its earnings as dividends.
If the stock is priced today at $19.50,
What is the Present Value of Growth Opportunities in the price of the stock today?
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick, Marci S. Thomas
5th Edition
1119553849, 9781119553847
