Question
Equity Financing Liberty Rehab Corporation has a current stock price of $56, and its last dividend (D0) was $5.00. In view of the company's strong
Equity Financing
Liberty Rehab Corporation has a current stock price of $56, and its last dividend (D0) was $5.00. In view of the company's strong financial position, its required rate of return is 10 percent. If Liberty's dividends are expected to grow at a constant rate in the future, what is the firm's expected stock price in five years?
Constant Growth Rate:
Expected Stock Price in 5 Years:
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Financial Management for Public Health and Not for Profit Organizations
Authors: Steven A. Finkler, Thad Calabrese
4th edition
133060411, 132805669, 9780133060416, 978-0132805667
