McCalla Food Distributors is currently paying a dividend of $1.80. This dividend is expected to grow at a rate of 6 percent in the future.
McCalla Food Distributors is currently paying a dividend of $1.80. This dividend is expected to grow at a rate of 6 percent in the future. McCalla is 10 percent less risky than the market as a whole. The market risk premium is 7 percent, and the riskfree rate is 5 percent. What is the estimated price of this stock?
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Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
