IBM's current stock price is $134, and its last dividend was $6.70. In view of IBM's strong
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IBM's current stock price is $134, and its last dividend was $6.70. In view of IBM's strong financial position and its consequent low risk, its required rate of return is only 11 percent. If dividends are expected to grow at a constant rate, g, in the future, and if R is expected to remain at 11 percent, what is IBM's expected stock price five years from now?
Related Book For
Financial Management Theory & Practice
ISBN: 9780324652178
12th Edition
Authors: Eugene BrighamMichael Ehrhardt
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