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Company A is a mature company which is expected to earn $5.60 as of the end of next year and has a dividend payout ratio
Company A is a mature company which is expected to earn $5.60 as of the end of next year and has a dividend payout ratio of 100%.If dividends are expected to grow at a rate of 5% per year and the cost of equity capital at Company A is 12%, what is the price of the stock?
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Using the Gordon Growth Model formula we have P D r g Where P ...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
8th Edition
1285190904, 978-1305176348, 1305176340, 978-1285190907
