Imagine that a software company declared a $1.25 per share annual dividend last week (therefore, DIV 0 = $1.25). The company's dividends are expected to
Imagine that a software company declared a $1.25 per share annual dividend last week (therefore, DIV0 = $1.25). The company's dividends are expected to increase by 3.35 percent annually and will remain at that rate indefinitely (g = 3.35%). What is one share of this stock worth to you today if your required rate of return is 12.5 percent? Find P0.
Stock Price Today, P0 =
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Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
