Constant growth: Michael Myers Corporation (MMC) paid a dividend of $2.50 yesterday. The company's dividend is expected to grow at a steady rate of 5 percent for the foreseeable future. If investors in stocks of companies like the Michael Myers Corporation require a rate of return of 15 percent, what should be the market price of MMC stock?

Answer rating: 100% (QA)

To calculate the market price of MMC stock we can ... View the full answer