A small, private company pays a dividend of $2 per quarter and it expects to continue...
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A small, private company pays a dividend of $2 per quarter and it expects to continue to pay this dividend indefinitely because it cannot grow because of some legal restraint. Assume a discount rate of 7%. What is the current stock price based on the Dividend Discount Model? A small, private company pays a dividend of $2 per quarter and it expects to continue to pay this dividend indefinitely because it cannot grow because of some legal restraint. Assume a discount rate of 7%. What is the current stock price based on the Dividend Discount Model?
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The Dividend Discount Model DDM values a stock by discounting its ... View the full answer
Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-1259289903
5th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Posted Date:
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