Question
Suppose this year's dividend of company X is $3. The discount rate on X' stock is 7%: a) If dividend growth rate is 3%, what
Suppose this year's dividend of company X is $3. The discount rate on X' stock is 7%:
a) If dividend growth rate is 3%, what is the price of the company X?
b) If the company's dividends are constant, thus no growth in dividends, what is the price of the company X?
c) List at least four assumptions behind the Gordon-Growth Model.
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Get StartedRecommended Textbook for
Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
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