Question
Problem 9-11 Valuation of a constant growth stock A stock is expected to pay a dividend of $0.50 at the end of the year (i.e.,
Problem 9-11 Valuation of a constant growth stock
A stock is expected to pay a dividend of $0.50 at the end of the year (i.e., D1= $0.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
9th Edition
0134519264, 9780134519265
