Question
The Franklin Co. has paid annual dividends of $0.66, $1.29, and $1.55 over the past three years (the most recent being paid today). Dividends in
The Franklin Co. has paid annual dividends of $0.66, $1.29, and $1.55 over the past
three years (the most recent being paid today). Dividends in the future are expected
to grow at a rate of 3%, 4%, and 5%, of the next 3 years, then level off to a growth
rate of 2%. Assuming shareholders require a return of 11%, what should the stock be
trading for today?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
