Indiana Electric Company (IEC) pays $1.25 per year in dividends, has done so for many years,...

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Indiana Electric Company (IEC) pays $1.25 per year in dividends, has done so for many years, and we expect it to continue doing so well into the future. If our expected rate of return is 6%, how much would we be willing to pay for the stock? If the stock were selling for $20, would we consider it a potentially good investment? Which dividend discount model did you use? Indiana Electric Company (IEC) pays $1.25 per year in dividends, has done so for many years, and we expect it to continue doing so well into the future. If our expected rate of return is 6%, how much would we be willing to pay for the stock? If the stock were selling for $20, would we consider it a potentially good investment? Which dividend discount model did you use?

Answer rating: 100% (QA)

To calculate the present value of the stock using the Dividend Discount Model DDM ... View the full answer