Question
The ABC Co has just paid a cash dividend of $2 per share. Investors require a 16 percent returns from investment. If the dividend is
The ABC Co has just paid a cash dividend of $2 per share. Investors require a 16 percent returns from investment. If the dividend is expected to grow at a steady 8 percent per year, what is the current value of the stock? What will the stock be worth in five years?
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Personal Finance Turning Money Into Wealth
Authors: Arthur Keown
8th Edition
0134730364, 978-0134730363
