Question
Thames Inc.s most recent dividend was $2.6 per share (D0 = $2.6). The dividend is expected to grow at a rate of 5% per year.
Thames Inc.s most recent dividend was $2.6 per share (D0 = $2.6). The dividend is expected to grow at a rate of 5% per year. The risk-free rate is 4% and the return on the market is 10%. The companys beta is 1.5
A. What is the required rate of return on the stock, ks?
B. What is the price of the stock today, P0?
C. What is the price of the stock three years from now, P3?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
9th Edition
9339222571, 978-9339222574
