Question
Lohn Corporation is expected to pay the following dividends over the next four years: $12, $9, $7, and $4. Afterward, the company pledges to maintain
Lohn Corporation is expected to pay the following dividends over the next four years: $12, $9, $7, and $4. Afterward, the company pledges to maintain a constant 6 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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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
