Question
Lohn Corporation is expected to pay the following dividends over the next four years: $11, $6, $4, and $3. Afterward, the company pledges to maintain
Lohn Corporation is expected to pay the following dividends over the next four years: $11, $6, $4, and $3. 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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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
