Question
Suppose a stock will pay $11 per share dividend in one year's time. The dividend is projected to grow at 8% the following year (2
Suppose a stock will pay $11 per share dividend in one year's time. The dividend is projected to grow at 8% the following year (2 years from today the dividend will be 11*1.08), and then 4% per year indefinitely after that. The required return is 10%. What is the stock's price today?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
