ABC, Inc. sells for $30 and pays $1.00 annual dividend per share, which you expect to...

 

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ABC, Inc. sells for $30 and pays $1.00 annual dividend per share, which you expect to grow at 7%. What is your expected return on his stock? What would be the expected return if the price rises to $40. ABC, Inc. sells for $30 and pays $1.00 annual dividend per share, which you expect to grow at 7%. What is your expected return on his stock? What would be the expected return if the price rises to $40.

Answer rating: 100% (QA)

The expected return on a stock can be estimated using the dividend growth model DGM This model assum... View the full answer