Question
Valuation of a constant growth stock A stock is expected to pay a dividend of $0.75 the end of the year (that is, D1 =
Valuation of a constant growth stock
A stock is expected to pay a dividend of $0.75 the end of the year (that is, D1 = $0.75), and it should continue to grow at a constant rate of 8% a year. If its required return is 12%, what is the stock's expected price 3 years from today? Round your answer to two decimal places.
$ ________
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
