Question
You find a stock with a beta of 1.3 that is expected to pay a dividend of $2.40 next year that is expected to grow
You find a stock with a beta of 1.3 that is expected to pay a dividend of $2.40 next year that is expected to grow at 6.3% afterward. If the risk-free rate is 3% and the expected market return is 8%, what should be the price of the stock?
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
14th edition
978-1305887725, 1305887727, 1305636619, 978-1305636613
