Question
You are going to purchase 1 share of ABC common stock. ABC just paid a dividend of $2.20 per share. Dividends are paid annually. You
You are going to purchase 1 share of ABC common stock. ABC just paid a dividend of $2.20 per share. Dividends are paid annually. You expect the dividend to increase by 48% per year for the next 4 years. Thereafter dividends will grow by 4.4% per year. The stock has a required rate of return of 12.0% compounded annually. What is the price of the stock today? Your answer should be accurate to two decimal places.
Your Answer:
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
