Question
The stock market is composed of three companies A, B, and C, each with a share of 1/3 in total capitalization. Analysts expect A to
The stock market is composed of three companies A, B, and C, each with a share of 1/3 in total capitalization.
Analysts expect A to pay a perpetual dividend of 10;
B to pay a divided of 3 next year and to grow by 5% forever;
C to pay a dividend of 2 and grow by 8% forever.
The market prices of stocks A, B, C are 100, 105 and 110 respectively. Find the implied market rate of return.
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The Cyber Attack Survival Manual
Authors: Heather Vescent ,Nick Selby
1st Edition
1681886545, 978-1681886541
