Question
The National Financing Company paid $2.00 per share in common stock dividends last year. The companys policy is to allow its dividend to grow at
The National Financing Company paid $2.00 per share in common stock
dividends last year. The companys policy is to allow its dividend to grow
at g1=10 percent for 4 years and then the rate of growth changes to g2=3 percent per year from year five and on. What is the fair value of the stock if the required rate of return is 8 percent? Would you buy this stock if the market price is $55.2?
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Personal Finance
Authors: Jack Kapoor
6th Edition
0072350849, 9780072350845
