Question
Constant Growth DDM A stock just paid a dividend of $0.90 per share. Dividends are expected to grow at a constant rate of 7% per
| Constant Growth DDM A stock just paid a dividend of $0.90 per share. Dividends are expected to grow at a constant rate of 7% per year forever. Investors expect and require a 11% return on this investment. The intrinsic value of this stock is __________. |
a) $24.08
b) $23.52
c) $23.83
d) $23.63
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
2nd Edition
0133001873, 978133001877
