Question
Problem 11-16 - Dividend Discount Model In three years, a company is expected to pay its first dividend of $1.63 per share per year. At
Problem 11-16 - Dividend Discount Model
In three years, a company is expected to pay its first dividend of $1.63 per share per year. At that point, the dividend is expected to grow at 8% per year indefinitely. Also suppose the required rate of return is 10%.
| Dividend | $1.63 |
|---|---|
| Growth | 8% |
| Required | 10% |
What is the value of the stock?
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Financial Markets Instruments And Institutions
Authors: Anthony M. Santomero, David Babbel
2nd Edition
0072358688, 9780072358681
