Question
M/s. ABC incorporation is expected to pay a $1.75 per share dividend at the end of this year (i.e., D1 = $1.75). The dividend is
M/s. ABC incorporation is expected to pay a $1.75 per share dividend at the end of this year (i.e., D1 = $1.75). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, Ks, is 16%. What is the value per share of ABCs stock (Po)? What will be the value of ABCs stock at the end of year 1 (P1)?
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
