Question
The Back Room just paid an annual dividend of $1.65 per share and is currently trading at $15.45 per share. The firm expects to pay
The Back Room just paid an annual dividend of $1.65 per share and is currently trading at $15.45 per share. The firm expects to pay dividends forever and to increase the dividend at a constant growth rate of g%. What is the expected value of this stock five years from now if the discount rate is 14%?
| $19.08 | ||
| $17.91 | ||
| $17.39 | ||
| $18.52 |
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Statistics Informed Decisions Using Data
Authors: Michael Sullivan III
5th Edition
978-0134135373, 134133536, 134135377, 978-0134133539
