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You are following a 3 year buy-hold strategy for the purchase of Home Depot stock. The firm expects to pay a dividend by the end
You are following a 3 year buy-hold strategy for the purchase of Home Depot stock. |
The firm expects to pay a dividend by the end of year 3 in the |
amount of $3.87 (D3 = $3.87). |
The expected growth rate in earnings over the next 3 years is 5.50% |
The expected rate of return on Home Depot is 18.75%. |
How much are you willing to approximately pay for Home Depot today? |
Po = $26.24
Po = $35.71
Po = $27.01
Po = $25.71
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