Question
Owen Inc. has a current stock price of $14.00 and is expected to pay a $0.70 dividend in one year. If Owens equity cost of
Owen Inc. has a current stock price of $14.00 and is expected to pay a $0.70 dividend in one year. If Owens equity cost of capital is 12%, what price would its stock be expected to sell for immediately after it pays the dividend?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
