Question
Two companies, A and B, are in the same risk class.Company A pays a constant dividend of $4 per year and is selling in the
Two companies, A and B, are in the same risk class.Company A pays a constant dividend of $4 per year and is selling in the market for $35 per share.Company B just paid a dividend of $3.25 per share.If its dividends are growing at a constant rate of 8 percent per year, what is the market price of B?
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Analysis for Financial Management
Authors: Robert c. Higgins
8th edition
73041807, 73041803, 978-0073041803
