Question
Valuation of a constant growth stock A stock is expected to pay a dividend of $2.25 at the end of the year (D1 = $2.25)
Valuation of a constant growth stock
A stock is expected to pay a dividend of $2.25 at the end of the year (D1 = $2.25) it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the stock's expected price 2 years from today?
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Investments
Authors: Zvi Bodie, Alan J. Marcus, Alex Kane
6th Edition
0072861789, 9780072861785
