Question
The company XYZ expects to pay annual dividends growing at the rate of 4% per year forever. What comes closest to the price per share
The company XYZ expects to pay annual dividends growing at the rate of 4% per year forever. What comes closest to the price per share of stock XYZ if it just paid an annual dividend of $4? Assume the discount rate of 6%.
The company XYZ expects to pay annual dividends growing at the rate of 4% per year forever. What comes closest to the price per share of stock XYZ if it just paid an annual dividend of $4? Assume the discount rate of 6%.
66.7
100
200
208
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p D 1 r g where PCurrent stock price gConstant ...
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
