Question
The XYZ company is expected to pay a dividend of $1.00 per share at the end of the year, and that dividend is expected to
| The XYZ company is expected to pay a dividend of $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The companys beta is 1.2, the market risk premium is 5.0%, and the nominal risk-free rate is 2.00%. A- What is the stocks fundamental price? B - What is the expected return? |
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
12th Edition
0030258723, 9780030258725
