Question
Hi can you please help me understand how to work through this question? (Common stock valuation) You are looking to purchase BA Plastics common stock
Hi can you please help me understand how to work through this question?
(Common stock valuation) You are looking to purchase BA Plastics common stock at $1.75 per share,
hold it 1 year, and sell after a dividend of $.50 is paid. How much will the stock price have to increase to
in order to satisfy your required rate of return of 20% and growth is expected at 7%?
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
