Question
Ineedhelpwiththesetwoquestions; need to know the format of calculations so I can do the rest of the problems. Whatisthecurrentpriceofthestockforacompanythatwillpaya$2.50dividendinoneyearandhasa12%rateofreturn?Thegrowthrateofthedividendsis5%. A company has offered stock that wont
- Ineedhelpwiththesetwoquestions; need to know the format of calculations so I can do the rest of the problems.
- Whatisthecurrentpriceofthestockforacompanythatwillpaya$2.50dividendinoneyearandhasa12%rateofreturn?Thegrowthrateofthedividendsis5%.
A company has offered stock that wont pay annual dividends at first, but will start paying an annual dividend of $4 starting 6 years from now. If the required return is 5%, what should you pay for the stock today?
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Financial Modeling
Authors: Simon Benninga
4th Edition
0262027283, 9780262027281
