Question
Star Manufacturing is expected to pay a dividend of $1.00 per share at the end of the year (D 1 = $1.00).The stock sells for
Star Manufacturing is expected to pay a dividend of $1.00 per share at the end of the year (D1 = $1.00).The stock sells for $40 per share and its required rate of return is 10.5%.The dividend is expected to grow at some constant rate, g, forever.What is the equilibrium expected growth rate?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
