Question
MRU Corp. has recently paid a dividend of $5 per share.The dividends are expected to grow by 10% per year for next two years (i.e.
MRU Corp. has recently paid a dividend of $5 per share.The dividends are expected to grow by 10% per year for next two years (i.e. till Year 2).After that, the dividends are expected to grow at a rate of 3% per year indefinitely.The investors require 8% return on this stock.The stock is currently trading at $105.Is the stock correctly priced?
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
