P7-3 Value a Constant Growth Stock Financial analysts forecast Safeco Corp. (SAF) growth for the future to
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Question:
P7-3 Value a Constant Growth Stock Financial analysts forecast Safeco Corp. (SAF) growth for the future to be 5 percent.Safeco's recent dividendwas $3.00. What is the value of Safeco stock when the required return is 14 percent?
Use equation:
Use equation:
Constant growth model= Po=Do(1+g)
____________
i - g
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