Question
Industrial Industries just paid a dividend of $4.40 per share. Dividends are expected to grow at 4% per year forever. If investor's have a required
Industrial Industries just paid a dividend of $4.40 per share. Dividends are expected to grow at 4% per year forever. If investor's have a required return of 11%, how much should the stock sell for 2 years from today?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the stocks price 2 years from today we can use the Gordon Growth Model also know...
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Materials Science and Engineering An Introduction
Authors: William D. Callister Jr., David G. Rethwisch
8th edition
470419970, 978-0470419977
