Question
You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $3.80. You have projected that dividends will grow
You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $3.80. You have projected that dividends will grow at a rate of 10.0% per year indefinitely. If you want an annual return of 16.0%, what is the most you should pay for the stock now?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
