Question
Company XYZ is expected to pay a dividend of $4 in 2 years and a dividend of $6 in 3 years after which you
Company XYZ is expected to pay a dividend of $4 in 2 years and a dividend of $6 in 3 years after which you expect dividends to grow at 5% for the foreseeable future. What would you expect the price of a share of stock to be today if XYZ's cost of equity capital is 18%? (round to the nearest penny)
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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