Question
Your company paid a dividend of $2.50/share last year. The company plans to pay a dividend of $2.75/share next year; $3.20/share in year 2 and
Your company paid a dividend of $2.50/share last year. The company plans to pay a dividend of $2.75/share next year; $3.20/share in year 2 and $3.50/share in year 3 then begin a constant growth policy of 3%. If the required rate of return on equity is 10%, what is the current stock price?
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The Handbook Of Energy Trading
Authors: Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli
1st Edition
1119953693, 978-1119953692
