Assume that at the end of the next year, Company A will pay a $2.00 dividend per
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Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of $1.50 per share. After that, the dividend is expected to increase at a constant rate of 5 percent. If you require a 12 percent return on the stock, what is the value of the stock?
a. $28.57
b. $28.79
c. $30.00
d. $31.78.
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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