Question
Market is expecting 13 per cent return from the ordinary share of a company. Investors are expecting $0.70 dividend per share from this company in
Market is expecting 13 per cent return from the ordinary share of a company. Investors are expecting $0.70 dividend per share from this company in next year. It is also predicted that the dividend for this company will grow at a constant rate of 4 per cent forever. What current price is expected for this ordinary share?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
