Question
The risk-free rate is 2.25% and the market risk premium is 8.20%. A stock with a of 1.21 just paid a dividend of $1.29. The
The risk-free rate is 2.25% and the market risk premium is 8.20%. A stock with a of 1.21 just paid a dividend of $1.29. The dividend is expected to grow at 20.27% for three years and then grow at 3.26% forever. What is the value of the stock?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
8th Edition
0357714636, 9780357714638
