Question
Valuation of a constant growth stock A stock is expected to pay a dividend of $2.75 the end of the year (that is, D1= $2.75),
Valuation of a constant growth stock
A stock is expected to pay a dividend of $2.75 the end of the year (that is, D1= $2.75), and it should continue to grow at a constant rate of 3% a year. If its required return is 12%, what is the stock's expected price 4 years from today? Round your answer to two decimal places.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
134796551, 134796550, 978-0134796550
