Question
Stock A paid 0.50 dividends last year. The company is now expected to increase dividends by 0.50 per year for four years (1.00 next year,
Stock A paid 0.50 dividends last year. The company is now expected to increase dividends by 0.50 per year for four years (1.00 next year, 1.50 the year after and so on). Thereafter dividends are not expected to grow or decline. The cost of capital is 9.5%. What is the price of stock today?
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Finance For Non Financial Managers
Authors: Gene Siciliano
1st Edition
0071413774, 978-0071413770
