Question
Richardson Brothers is expected to pay a $1.00 per share dividend at the end of the year (that is, D 1 = $1.00). The dividend
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Richardson Brothers is expected to pay a $1.00 per share dividend at the end of the year (that is, D 1 = $1.00). The dividend is expected to grow at a constant rate of 5 percent a year. The required rate of return on the stock, r s, is 10 percent. What is the stocks value per share?
a. $20.00
b. $19.05
c. $10.50
d. $10.00
e. $21.00
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Project Finance
Authors: B Rajesh Kumar
1st Edition
3030967247, 978-3030967246
