Question
Constant Growth Valuation Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D 1 = $1.80).
Constant Growth Valuation
Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D1 = $1.80). The dividend is exptected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 10%. What is the stock's current value per share?
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Healthcare Finance Modern Financial Analysis For Accelerating Biomedical Innovation
Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
