Question
Blart Corp. recently paid a dividend of $5.00 per share. Analysts forecast future dividends will increase by 2% forever. The required rate of return that
Blart Corp. recently paid a dividend of $5.00 per share. Analysts forecast future dividends will increase by 2% forever. The required rate of return that investors demand to hold Blart Corp.'s stock is 8% What is its estimated price per share today?
- 1.$85
- 2.$62.50
- 3.$63.75
- 4.$83.33
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
