Question
Today, IBM paid a dividend of $1.50 per share. Investors think that IBMs dividend will grow at 5% for the next four years. After that,
Today, IBM paid a dividend of $1.50 per share. Investors think that IBMs dividend will grow at 5% for the next four years. After that, the dividend will be constant at $3. What should be the price per share of IBM if the discount rate is 8%?
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International Financial Management
Authors: Jeff Madura
7th Edition
0324071744, 978-0324071740
