Question
The year-end dividend of a company will be $2.40 and this is expected to grow at 4% forever. The required rate of return for the
The year-end dividend of a company will be $2.40 and this is expected to grow at 4% forever. The required rate of return for the stock is 12%. Calculate the price of the stock. If earnings per share re $3.10 what is the present value of growth opportunities for the company.
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Entrepreneurial Financial Management An Applied Approach
Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman
5th Edition
0367335417, 978-0367335410
