A companys stock is selling at $80 and its dividend for the next year is expected to
Question:
A company’s stock is selling at $80 and its dividend for the next year is expected to be $4. The expected perpetual growth rate is 0.10 and the cost of equity is 0.15.
a. What will be the expected dividend after one year has passed?
b. What will be the price after one year?
c. What is the percentage increase in stock price?
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a The expected dividend after one year can be calculated using t...View the full answer
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Related Book For 
An Introduction To Accounting And Managerial Finance A Merger Of Equals
ISBN: 9789814273824
1st Edition
Authors: Harold JR Bierman
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