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Can I pls get help with this? Chapter 7 : Stock Valuation Exercise 1 : valuing a share of a stock ( P ) that
Can I pls get help with this?
Chapter : Stock Valuation
Exercise : valuing a share of a stock P that pays a dividend and you expect to hold it for one period assume you expect the dividend to be $ in one year not right away, but wait one year out you expect to sellreceive $ for one share of this stock in one year you have a required return of for investments of similar risk how much should you pay for this one share? You don't want to pay too much...
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Exercise : valuing a share of a stock that pays a constant dividend forever assume you expect the dividend to be $ in one year not right away, but wait one year out required rate of return is
Answer:
Exercise : valuing a share of a stock that pays a dividend that grows at a constant rate in the future Use the modified Gordon Growth Model:
assume the company now pays dividend DO of $ and it is expected to grow at per year. the required rate of return is on assets with this type of risk
Answer:
Exercise : find the required return for a given share of a stock
assume the current price $ initial dividend $ dividend growth rate per year What is the or required return?
or simplified it is equals to
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