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One of the options is Delta Airlines. They have paid an annual dividend of $ 4 . 9 4 for the past 2 5 years
One of the options is Delta Airlines. They have paid an annual dividend of $ for the past years and we expect them to continue this indefinitely. Assuming the market requires an return from Delta, what is the value of a share of stock? Hint: Round intermediate calculations and answer to decimal places
$
And what if we assumed they would start increasing their dividend by per year? What would be a fair price to pay in
And what if we assumed they would start increasing their dividend by per year? What would be a fair price to pay in that scenario? Hint: Round intermediate calculations and answer to decimal places
$
Hint Use the constant growth model
And what if we assumed they would start increasing their dividend by per year? What would be a fair price to pay in that scenario? Hint: Round intermediate calculations and answer to decimal places
$
Hint Use the constant growth model
I need help with the second question I keep getting it wrong. The first question is needed information.
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