Assume you want to invest in a stock with a current market price of $100 per share.
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Question:
Assume you want to invest in a stock with a current market price of $100 per share. The stock is expected to pay a dividend of $3 per share at the end of each year indefinitely. If you require a rate of return of 10%, what should be the fair value of the stock?
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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