Question
Roku has a beta of 0.94 and just paid a dividend of 54 cents per share. Its dividends are expected to grow at a rate
Roku has a beta of 0.94 and just paid a dividend of 54 cents per share. Its dividends are expected to grow at a rate of 11%. If the risk-free rate is 1.9% and the market risk premium is 13%, what is the fair price of a share of Roku stock using the Gordon Growth Model?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
6th Canadian edition
1259453146, 978-1259453144
