Question
RexCut, Inc just paid a dividend on its common stock of $3.30 per share. The Market expects that dividend to grow at 4.2% per year
RexCut, Inc just paid a dividend on its common stock of $3.30 per share. The Market expects that dividend to grow at 4.2% per year henceforth. Assume that the required return for RexCut, Inc shares is 11%. What should be the market price per share of RexCut, Inc common stock (rounded to two decimal places) ?
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Problems In Portfolio Theory And The Fundamentals Of Financial Decision Making
Authors: Leonard C Maclean, William T Ziemba
1st Edition
9814749931, 978-9814749930
