Question
DEF'S common stock just paid a dividend of $3 per share. You expect the dividend to increase by 5% per year in perpetuity. If you
DEF'S common stock just paid a dividend of $3 per share. You expect the dividend to increase by 5% per year in perpetuity. If you require a 15% rate of return, what is the price of the stock today?
The answer I'm getting is $30 but apparently thats wrong. Please help
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
