Question
Bear Company pays no dividends, but has announced that it will begin paying dividends in 5 years. Its first dividend will be $2 per share,
Bear Company pays no dividends, but has announced that it will begin paying dividends in 5 years. Its first dividend will be $2 per share, and Bear Company has pledged to maintain a dividend growth rate of 4% per year. Investors require a 9% return on Bear Company stock. What is Bear Company stock worth today?
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The Concepts And Practice Of Mathematical Finance
Authors: Mark S. Joshi
2nd Edition
0521514088, 9780521514088
