Richard, Inc., will pay a quarterly dividend per share of $.61 at the end of each of
Question:
Richard, Inc., will pay a quarterly dividend per share of $.61 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.1 percent forever. The appropriate rate of return on the stock is 11 percent, compounded quarterly. What is the current stock price?
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Here we have a stock paying a constant dividend for a fixed period and an incre...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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