Question
QUESTION 2 What is the value of a stock that expects to pay a $3.00 dividend next year, and then increase the dividend at a
QUESTION 2
What is the value of a stock that expects to pay a $3.00 dividend next year, and then increase the dividend at a rate of 8% per year indefinitely? Assume a 12% expected return.
| a. | $25.00 | |
| b. | $69.44 | |
| c. | $75.00 | |
| d. | $81.00 |
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Fundamentals Of Investments Valuation And Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
9th Edition
1260013979, 9781260013979
