Question
Coca Cola private limited paid a $2 per share dividend yesterday. It is expected to grow steadily at the rate of 5% per year. a.
Coca Cola private limited paid a $2 per share dividend yesterday. It is expected to grow steadily at the rate of 5% per year.
a. What is expected dividend in each of next 4 years?
b. If the discount rate of the stock is 10%. At what price will the stock sell if the forecasted price at the end of fourth year is $30?
c. What is the expected price after 4 years if today it is selling for $28?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
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