Question
In the constant growth model, if the price of a stock today (P 0 ) is $30 and the dividend of the stock is expected
In the constant growth model, if the price of a stock today (P0) is $30 and the dividend of the stock is expected to grow at a rate of 10% each year, what will be the price of the stock two years from now (P2)? This is all that was given
| a | $31.21 |
| b | $32.2 |
| c | $36.3 |
| d | $33 |
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
