Question
LED, Inc. just paid an annual dividend of $2.50 per share. The dividends are expected to grow for the next 4 years at 6.5% per
LED, Inc. just paid an annual dividend of $2.50 per share. The dividends are expected to grow for the next 4 years at 6.5% per year, then grow at 3% per year forever. The required rate of return for LED stock is 12% per year. What should the stock price of LED be in year 2, immediately after the year 2 dividend is paid?
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Financial Markets And Institutions An Introduction To Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
3rd Edition
0073250937, 9780073250939
