Question
Problem 8-23 Dividend Initiation and Stock Value (LG8-6) A firm does not pay a dividend. It is expected to pay its first dividend of $0.10
Problem 8-23 Dividend Initiation and Stock Value (LG8-6)
| A firm does not pay a dividend. It is expected to pay its first dividend of $0.10 per share in three years. This dividend will grow at 8 percent indefinitely. Use a 9 percent discount rate. |
Compute the value of this stock $_____
Round your answers to 2 decimal places
* please show steps how to solve*
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Handbook Of The Fundamentals Of Financial Decision Making
Authors: Leonard C MacLean, William T Ziemba
1st Edition
9814417343, 978-9814417341
