Company X has 100 shares outstanding. He earns $1,000 per year and expects to pay it all

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Company X has 100 shares outstanding. He earns $1,000 per year and expects to pay it all as dividends. If the company expects to keep this dividend forever, calculate the stock price today. (The required rate of return is 10%)

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Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Jun 15, 2023 05:22 AM

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Company X has 100 shares outstanding. He earns $1,000 per year and expects to pay it all

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To calculate the stock price today we can use the dividend discount model ... View the full answer

Fundamentals Of Corporate Finance

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