Question
IBIS Corporation has had dividends grow from $2.50 per share to $6.50 per share over the last 10 years (the $6.50 per share dividend was
IBIS Corporation has had dividends grow from $2.50 per share to $6.50 per share over the last 10 years (the $6.50 per share dividend was paid yesterday; that is, D0 = $6.50). This compounded annual growth rate in dividends is expected to continue into the future forever. If the current market price of IBIS's stock is $45.00 per share, what rate of return do investors expect to receive from buying IBIS stock?
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
