Question
Common stock value: Constant growthThe common stock of Barr Labs Inc., trades for $121 per share. Investors expect the company to pay a(n) $1.43 dividend
Common stock value: Constant growthThe common stock of Barr Labs Inc., trades for
$121
per share. Investors expect the company to pay a(n)
$1.43
dividend next year, and they expect that dividend to grow at a constant rate forever. If investors require a(n)
14.2
%
return on this stock, what is the dividend growth rate that they are anticipating?
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Private Debt Yield Safety And The Emergence Of Alternative Lending
Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
