Question
Star Manufacturing is expected to pay a dividend of $4.00 per share at the end of the year (D1 = $4.00). The stock sells for
Star Manufacturing is expected to pay a dividend of $4.00 per share at the end of the year (D1 = $4.00). The stock sells for 560 per share, and its required rate of return is 10%. 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: James C. Van Horne
10th Edition
0138596875, 978-0138596873
