A company is expected to pay a $1.50/share dividend next quarter, and dividends are expected to grow
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A company is expected to pay a $1.50/share dividend next quarter, and dividends are expected to grow at an annualized rate of 4% per year. If investors apply an 8% discount rate, then the discounted cash flow model suggests that this stock would be worth how much today?
Suppose investors expect a $1.50/share dividend next quarter, but they feel that dividends will stay at that level into the future (and not grow). If investors apply an 8% discount rate.
How much would be worth how much today?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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