A firm is currently experiencing troublesome times. The last dividend paid was $4, but this is expected
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A firm is currently experiencing troublesome times. The last dividend paid was $4, but this is expected to decline at a rate of 3% per year. If investors require 12%, what will the stock price be in 3 years? Assume that the firm stock beta is 2 the risk-free rate is 7 and the expected market return is 12.
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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