Question
Over the past 5 years the earnings per share (EPS) of a local firm have grown from $0.62 to $0.91. If an investor in this
Over the past 5 years the earnings per share (EPS) of a local firm have grown from $0.62 to $0.91. If an investor in this firm is assumed to have a required rate of return of 14%, what is the current value of its common stock if its current dividend is 0.12 (D0 = $0.12)? Assume EPS (and therefore its dividends per share) will continue to grow at a constant rate.
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Secured Finance Transactions
Authors: Dominic RM Griffiths
2nd Edition
1787425142, 978-1787425149
