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Suppose you're analyzing a company that is going to pay a constant annual dividend of $2 for the next 3 years, then the dividend will
Suppose you're analyzing a company that is going to pay a constant annual dividend of $2 for the next 3 years, then the dividend will grow at a constant rate of 3% per year forever. If the required rate of return on this investment is 5%, what's should be the stock price?
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The formula for the DDM is P D r g Where P Stock price D Dividend ...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
