Question
Suppose that the IHOP Corp., the International House of Pancakes restaurant company, will pay a $1.00 per share dividend over the next year. If investors
Suppose that the IHOP Corp., the International House of Pancakes restaurant company, will pay a $1.00 per share dividend over the next year. If investors require an 11% annual return from investments such as this one, and the future rate of growth in dividends is expected to rise from the company's historical rate of 5% annually, what will happen to the stock price today?
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
