Question
Lohn Corporation is expected to pay the following dividends over the next four years: $11, $7, $4, and $1. Afterward, the company pledges to maintain
Lohn Corporation is expected to pay the following dividends over the next four years: $11, $7, $4, and $1. Afterward, the company pledges to maintain a constant 3 percent growth rate in dividends forever.
If the required return on the stock is 12 percent, what is the current share price?
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$35.38
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$26.02
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$26.94
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$26.16
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$24.85
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Fixed Income Securities Valuation Risk and Risk Management
Authors: Pietro Veronesi
1st edition
0470109106, 978-0470109106
