Question
The dividend that was just paid for ABC stock was $3.25. The company is expected to grow at 6% in the next 4 years and
The dividend that was just paid for ABC stock was $3.25. The company is expected to grow at 6% in the next 4 years and then have a constant growth of 3% after that forever. The cost of capital (equity) is 5%. What should be the stock price of this company now? A. $153.12 B. $172.67 C. $187.33 D. $198.77 E. $213.15
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Principles Of Finance
Authors: Besley, Scott Besley, Eugene F Brigham, Brigham
4th Edition
0324655886, 9780324655889
