Question
Two months ago, Alpha Beta Corp. (ABC) paid a $2.40 dividend (it pays dividends annually). Future dividends are expected to grow at the constant rate
Two months ago, Alpha Beta Corp. (ABC) paid a $2.40 dividend (it pays dividends annually). Future dividends are expected to grow at the constant rate of 1% per year. If the effective annual required rate of return on ABC stock is 18%, what is the current stock price of ABC?
(With formulas)
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
