Question
You are estimating the price of a stock expected to pay the following dividends per share: $3.65 one year from now, $4.65 two years from
You are estimating the price of a stock expected to pay the following dividends per share: $3.65 one year from now, $4.65 two years from now, and $5.65 three years from now. Three years from now, immediately after receiving the dividend of $5.65, you believe you can sell the stock for $84.03 per share. If the annual cost of equity capital is 9.2 percent, what is this stock worth today?
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The Handbook Of Hybrid Securities Convertible Bonds CoCo Bonds And Bail In
Authors: Jan De Spiegeleer, Wim Schoutens, Cynthia Van Hulle
1st Edition
1118449991, 978-1118449998
