Question
The X Corporation will pay a constant dividend of $1,17 per share, per year, in perpetuity. Assume all investors pay a 16% tax on dividends
The X Corporation will pay a constant dividend of $1,17 per share, per year, in perpetuity. Assume all investors pay a 16% tax on dividends and that there is no capital gains tax. Suppose other investments with equivalent risk to X stock offer an after-tax return of 11%. What is the price of a share of X stock?
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
