Question
Ex 5) A stock is selling for $40 per share currently. The next dividend will be $1 per share, and will grow at 12% per
Ex 5) A stock is selling for $40 per share currently. The next dividend will be $1 per share, and will grow at 12% per year forever. What is the rate of return required by investors? Answer: 14.5% I have the equation set up for this problem. The only thing I still need to finish my answer is the timeline for calculating the rate of return required by investors.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
