Question
The expected next year earnings per share for stock BCD is $2.00. The expected next year dividends per share (d 1 ) for stock BCD
The expected next year earnings per share for stock BCD is $2.00. The expected next year dividends per share (d1) for stock BCD is $1.50. Stock BCDs annual Return on Equity is 8% and annual Cost of Equity (ke) is 9%. What is the value of BCDs stock's price per share today, given its prevailing dividend policy, based on the constant growth model?
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
