Question
The current price ( Po) of a stock is $20.00 a share and the year-end dividend is expected to be $2 a share (D 1
The current price ( Po) of a stock is $20.00 a share and the year-end dividend is expected to be $2 a share (D1 = $2). The required rate of return on the stock is 15.00 % and its dividend is expected to grow at a constant rate forever. What is the expected price of this stock 7 years from now?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
