Question
How much would you pay for a share of stock today if you expect it will pay an annual dividend of $2.50 for the next
How much would you pay for a share of stock today if you expect it will pay an annual dividend of $2.50 for the next two years and will sell for $58 two years from now?
Assume your required rate of return on this stock is 13 percent.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
