Question
The D.I.V. Company currently pays a dividend of $1.05 per share. If the dividends are expected to grow at a rate of 5% per year,
The D.I.V. Company currently pays a dividend of $1.05 per share. If the dividends are expected to grow at a rate of 5% per year, forever, and if investors required rate of return on D.I.V. is 10%. What is the current value of the stock according to the dividend value model?
- $ 19
- $20
- $21
- $22
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
2nd Edition
1567931650, 978-1567931655
