Question
Sullivan Brothers is expected to pay a $1.75 per share dividend at the end of the year (that is, D 1 = $1.75). The dividend
Sullivan Brothers is expected to pay a $1.75 per share dividend at the end of the year (that is, D 1 = $1.75). The dividend is expected to grow at a constant rate of 3 percent a year. The required rate of return on the stock, r s, is 9 percent. What is the stocks value per share?
| a. | $29.17 | |
| b. | $19.44 | |
| c. | $20.03 | |
| d. | $28.32 | |
| e. | $30.04 |
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Equity Valuation And Portfolio Management
Authors: Frank J. Fabozzi, Harry M. Markowitz
1st Edition
047092991X, 9780470929919
