Question
Target (TGT)is currently trading at a price of $50 per share.It plans on paying a dividend next year of $8 per share and this dividend
Target (TGT)is currently trading at a price of $50 per share.It plans on paying a dividend next year of $8 per share and this dividend will grow at a constant rateforever.Currently,the risk-free rate is 2%, the expected market return is 12% and TGT has a Beta of 0.8.You anticipate TGT to be trading at a price of $__________next year (t=1).
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
7th Edition
013213683X, 978-0132136839
