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Estimate the current share value of Southern Company (SO) given the following information: SO's bonds are paying interest at 7% SO's shareholders require a 10%
Estimate the current share value of Southern Company (SO) given the following information: SO's bonds are paying interest at 7% SO's shareholders require a 10% return SO's last annual dividend of $1.30 per share was paid yesterday (assume all dividends paid once per year). SO's dividends are expected to grow at 3.5% per year indefinitely. Hint: This should tell you what model to use. SO's stock price dropped by 5% last year SO's beta is
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