Question
The common stock of ABC Corporation is expected to pay a dividend of $4.50 per share in one year. (i.e., D1 = $4.50) Dividends are
The common stock of ABC Corporation is expected to pay a dividend of $4.50 per share in one year. (i.e., D1 = $4.50) Dividends are expected to grow at a constant rate of 4% indefinitely. Investors require a 14.857% rate of return on ABC stock. What is the theoretical value of this stock?
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
