Question
Company A has a current stock price of $100 and is expected to pay a $7 dividend in one year. The equity cost of capital
Company A has a current stock price of $100 and is expected to pay a $7 dividend in one year. The equity cost of capital is 5%. What price would its stock be expected to sell for immediately after it pays the dividend?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
10th Edition
053875446X, 978-0538754460
