Question
Greenever Co. has just paid an annual dividend of $2 per share and plans to pay $2.1 per share next year. That means a 5%
Greenever Co. has just paid an annual dividend of $2 per share and plans to pay $2.1 per share next year. That means a 5% dividend growth per year. If investors expect Greenever to keep the 5% dividend growth forever, how much should they pay for a share of Greenevers stock at a discount rate of 12% (EAR)?
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Project Financing Asset-Based Financial Engineering
Authors: John D Finnerty
3rd Edition
1118421841, 9781118421840
