Question
The Okkeg Company just paid its shareholders an annual dividend of $2.00 and has announced that the dividends will grow at an annual rate of
The Okkeg Company just paid its shareholders an annual dividend of $2.00 and has announced that the dividends will grow at an annual rate of 8% forever. If investors expect to earn an annual rate of return of 12% on this investment, how much will they offer for the stock?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
