Question
IBIS Corporation has had dividends grow from $2.50 per share to $6.00 per share over the last 10 years (the $6.00 per share dividend was
IBIS Corporation has had dividends grow from $2.50 per share to $6.00 per share over the last 10 years (the $6.00 per share dividend was paid yesterday; that is, D0 = $6.00). This compounded annual growth rate in dividends is expected to continue into the future forever. If the current market price of IBISs stock is $45.00 per share, what rate of return do investors expect to receive from buying IBIS stock?
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
