Question
Growth: When Company is growing it will pay a dividend of $10.00 per share next year. The required rate of return on the stock is
Growth: When Company is growing it will pay a dividend of $10.00 per share next year. The required rate of return on the stock is 11% and the growth rate is 7% per year.
No Growth: If it did not grow then it will pay $22 dividend next year and required rate of return is 11%, calculate the present value of growth opportunities for the stock (PVGO).
| $100 | ||
| $30 | ||
| $50 | ||
| $80 | ||
| $40 |
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International Business Competing In The Global Marketplace
Authors: Charles Hill
14th Edition
1260387542, 9781260387544
