Question
Company has the following dividend stream. D1 = 1.32 D2 = 3.02 D3 = 4.1 D4 = 5.13 Dividend is expected to be constant after
Company has the following dividend stream.
D1 = 1.32
D2 = 3.02
D3 = 4.1
D4 = 5.13
Dividend is expected to be constant after year 4, with a growth rate of 4%. The cost of equity is 10%. What is the stock price, P0 , today?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
