Question
How much would you pay for a stock that is expected to pay it's first dividend of $5 7-years from now ($5 at t=7 and
How much would you pay for a stock that is expected to pay it's first dividend of $5 7-years from now ($5 at t=7 and $0 from t=0 to t=6)) if you expect dividends to then grow by 3% per year after that (t=8 to infinity). Assume your required rate of return is 10%?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
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