Question
TRUE OR FALSE: Simpson Manufacturing (SM) has just paid an annual dividend of $0.88 per share of common stock. Management expects dividends to grow at
TRUE OR FALSE: Simpson Manufacturing (SM) has just paid an annual dividend of $0.88 per share of common stock. Management expects dividends to grow at 4% annually into perpetuity. SM has a stock beta of 1.1. The risk-free return is 2% (0.02) and the market risk premium is 8% (0.08). The price of one share of SM stock should be about $13.46.
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
