Question
You expect a company to pay a $6 dividend at the end of this year and then that dividend to decrease 5% per year forever.
You expect a company to pay a $6 dividend at the end of this year and then that dividend to decrease 5% per year forever. If you use a 10% discount rate, what is the investment value today?
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The formula for the present value of a perpetuity is PV D r Where PV Present Valu...
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Financial Accounting Information For Decisions
Authors: Robert w Ingram, Thomas L Albright
6th Edition
9780324313413, 324672705, 324313411, 978-0324672701
