Question
PA-Tech is currently paying dividends of $0.5 per share. These dividends are expected to grow at a rate of 10% for the next two years
PA-Tech is currently paying dividends of $0.5 per share. These dividends are expected to grow at a rate of 10% for the next two years and at a constant growth rate of 2% thereafter. The required return to invest in this stock is 15%. If the price of PB-Tech in the market currently is $5 per share, should you buy this stock? You must show your calculation
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
