Question
The expected dividend next year is $1.50, and dividends are expected to grow at 5% forever. If the discount rate is 10%, what is the
The expected dividend next year is $1.50, and dividends are expected to grow at 5% forever. If the discount rate is 10%, what is the value (present value, PV) of this promised dividend stream?
a.
$20.00
b.
$30.00
c.
$15.00
d.
$45.00
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk
11th Edition
0324422865, 978-0324422863
