GM is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to

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GM is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to grow at the rate of 2% per year. The risk-free rate is 4% and the market risk premium is 5%. GM has a beta of 1.2. Calculate the value of stock.

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Apr 24, 2024 02:59 AM

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GM is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to

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Heres how to calculate the value of GMs stock using the Gordon Growth Model GGM 1 Constant Growth Di... View the full answer

Fundamentals of Financial Management

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