Question
The risk-free rate is 3.61% and the market risk premium is 9.03%. A stock with a of 1.75 just paid a dividend of $1.32. The
The risk-free rate is 3.61% and the market risk premium is 9.03%. A stock with a of 1.75 just paid a dividend of $1.32. The dividend is expected to grow at 24.38% for three years and then grow at 3.76% forever. What is the value of the stock?
Answer format:Currency: Round to: 2 decimal places.
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
