Question
ou are analyzing a company and you expect the firm to pay a dividend of $1.41 next year and $4.18 the following year (year 2).
ou are analyzing a company and you expect the firm to pay a dividend of $1.41 next year and $4.18 the following year (year 2). After the second year you expect the dividend to grow at a rate of 5.0%. You feel the appropriate discount rate is 11.8%.
Given the following information, what should be the price of the stock?
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Finance And Economics Discussion Series Measurement Error And Time Aggregation A Closer Look At Estimates Of Output Labor Elasticities
Authors: United States Federal Reserve Board, Marcello Estevao
1st Edition
1288722990, 9781288722990
