Question
M/s. XYZ Manufacturings stock currently sells for $25 a share. The stock just paid a dividend of $1.10 a share (i.e., D0 = $1.10), and
M/s. XYZ Manufacturings stock currently sells for $25 a share. The stock just paid a dividend of $1.10 a share (i.e., D0 = $1.10), and the dividend is expected to grow forever at a constant rate of 8% a year. What stock price is expected 1 year from now? What is the required rate of return on XYZs stock?
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
