Question
Company A has a current stock price of $50 and is expected to pay a $5 dividend in one year. The equity cost of capital
Company A has a current stock price of $50 and is expected to pay a $5 dividend in one year. The equity cost of capital is 10%. What price would its stock be expected to sell for immediately after it pays the dividend? Note: 3 decimal places
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
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