Question
Assume a stock pays a $2.00 dividend at the end of year one and a $3.00 dividend at the end of year 2. The stock
Assume a stock pays a $2.00 dividend at the end of year one and a $3.00 dividend at the end of year 2. The stock is sold at the end of year 2 for $56. Assuming a 14% required expected rate of return by the stockholders, what is the stocks estimated value today?
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Handbook Of Income Distribution Volume 2B
Authors: Anthony B. Atkinson, Francois Bourguignon
1st Edition
0444594299, 978-0444594297
