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XYZ Corporation has a stock priceP0= $80. The firm has just paid dividend of $4 per share, and intelligent shareholders think that this dividend will
- XYZ Corporation has a stock priceP0= $80. The firm has just paid dividend of $4 per share, and intelligent shareholders think that this dividend will grow by a rate of 5 percent per year going forward. Use the Gordon model to calculate the cost of equity for XYZ Corporation.
- Historically over the long-term, what is the return per unit of risk if one invests in the S&P500 for the long-term?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
