Question
Greetings, I'm struggling with this problem, not sure where I'm going wrong. Any help is appreciated. Thank you! A company currently pays no dividend but
Greetings,
I'm struggling with this problem, not sure where I'm going wrong. Any help is appreciated. Thank you!
A company currently pays no dividend but is expected to pay its first annual dividend of $5.45 per share exactly 6 years from today. After that, the dividends are expected to grow at 3.6 percent forever. If the required return is 12.4 percent, what is the price of the stock today?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
