Question
The risk-free rate is 2.06% and the market risk premium is 5.41%. A stock with a of 1.41 just paid a dividend of $2.40. The
The risk-free rate is 2.06% and the market risk premium is 5.41%. A stock with a of 1.41 just paid a dividend of $2.40. The dividend is expected to grow at 23.94% for three years and then grow at 3.04% forever. What is the value of the stock?
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Options Futures and Other Derivatives
Authors: John C. Hull
10th edition
013447208X, 978-0134472089
