Question
PLEASE ANSWER FAST You are thinking about investing in stock in a company that paid a dividend of $0.65 this year and whose dividends you
PLEASE ANSWER FAST
You are thinking about investing in stock in a company that paid a dividend of $0.65 this year and whose dividends you expect will grow at 4% a year. The risk-free rate is 0.75% and you require a risk premium of 5%. What is the maximum price at which you should buy the stock? That is, what is the current purchase price of the stock? Round your answer to two decimal places.
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
