Cole Field Corporation pays a constant annual dividend of $2.50 per share. The shareholders of the companys
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Cole Field Corporation pays a constant annual dividend of $2.50 per share. The shareholders of the company’s main competitor face similar risk as those of Cole Field Corp. The competitor trades at $60, and its dividend last year was $1 and is expected to grow in perpetuity by 3% per year. What must Cole Field Corporation’s stock price be to reflect the similar risk between the two companies?
Related Book For
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
Posted Date: