IBM will pay tomorrow a dividend of $0.75 per share, and that dividend is expected to grow

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IBM will pay tomorrow a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 6.5% per year in the future.

Additional information: the company's beta is 1.25, required return on the market is 10.5%, and the risk free is 4.5%.

What is the company's current stock price?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Sep 18, 2023 01:10 AM

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IBM will pay tomorrow a dividend of $0.75 per share, and that dividend is expected to grow

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Expert Answer:

To calculate the current stock price of IBM you can use the Gordon Growth Mod... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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