Question
Problem 1 CityU is expanding fast and therefore will not pay any dividends for the next 3 years. After that, starting at the end of
Problem 1
CityU is expanding fast and therefore will not pay any dividends for the next 3 years. After that, starting at the end of year 4, it will pay a dividend of $0.75 per share to its common shareholders and increase it by 4% each year. If an investor wants to earn 12% per year on this investment, how much should she pay for the stock?
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
