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You are evaluating a stock using a dividend discount model. The stock is currently paying a dividend and the dividend has been growing at 5%
- You are evaluating a stock using a dividend discount model. The stock is currently paying a dividend and the dividend has been growing at 5% per year. If your required rate of return is 12% and you expect the dividend growth rate to go to 7%, would you expect the value of the stock to increase, decrease or stay the same? Why?
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
