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You have gathered the following information for a company: Dividend per share paid today 10 Cost of equity 10% Dividend growth rate in perpetuity 6%
You have gathered the following information for a company:
Dividend per share paid today | 10 |
Cost of equity | 10% |
Dividend growth rate in perpetuity | 6% |
Based on the dividend discount model, what share price would you expect this company to have today?
$165 | ||
$225 | ||
$250 | ||
$275 | ||
$300 |
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