Question
Last year, IBM paid a dividend of $1.50 per share. Investors think that IBMs dividend will growat 10% for the next four years. After that,
Last year, IBM paid a dividend of $1.50 per share. Investors think that IBMs dividend will growat 10% for the next four years. After that, the dividend will be constant at $4. What should bethe price per share of IBM if the discount rate is 8%?
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
17th Edition
1119561175, 978-1119561170
