Assume 10% is the appropriate risk-adjusted discount rate to use for XYZ stock. What will the price of XYZ stock be if XYZ is expected to pay a dividend of $5 next year, a dividend of $5.25 the following year, and dividends are expected always grow at a constant rate?

Answer rating: 100% (QA)

If dividends are expected to grow at a constant rate you can use the Gordon Growth Model al... View the full answer