Question
Company A has a current stock price of $35.10 and is expected to pay a $3.73 dividend in one year. The equity cost of capital
Company A has a current stock price of $35.10 and is expected to pay a $3.73 dividend in one year. The equity cost of capital is 8.99%. What price would its stock be expected to sell for immediately after it pays the dividend?
NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68.
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
