Question
Clark Brothers is expected to pay a $1.50 per share dividend at the end of the year (that is, D1 = $1.50). The dividend is
Clark Brothers is expected to pay a $1.50 per share dividend at the end of the year (that is, D1 = $1.50). The dividend is expected to grow at a constant rate of 7 percent a year. The required rate of return on the stock, rs, is 13 percent. What is the stocks value per share?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
6th Edition
1260226786, 9781260226782
