marshall corp has just paid a dividend of $3 per share and you are now considering purchasing this stock. Analysts have estimated that Marshall's dividend will grow at 5% per year in perpetuity. Given the riskiness of Marshall stock, shareholders' required of return is 11%. What should you be willing to pay for Marshall stock?

Answer rating: 100% (QA)

Based on the constant growth dividend discount model DDM the p... View the full answer