A share of stock is expected to pay a dividend of $1.00 one year from now and
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A share of stock is expected to pay a dividend of $1.00 one year from now and grow at 5% thereafter. In the context of a dividend discount model, the stock is correctly priced today at $10. According to the single-stage, constant-growth DDM, if the required return is 15%.
What should be the value of the stock two years from now?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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