Question
Microsoft pays annual dividend of $2.24 per share. The dividend growth rate in the past four years is 9.5% a year. Its cost of equity
Microsoft pays annual dividend of $2.24 per share. The dividend growth rate in the past four years is 9.5% a year. Its cost of equity is 6.03%. What is the forecasted price of Microsoft?
Group of answer choices
It cannot be forecasted using the constant dividend growth model
-$76.65
-$70
$70
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
