Question: Example: A stock you are evaluating is expected to pay a constant dividend of $5 per year each year into the future. The expected rate

Example: A stock you are evaluating is expected to pay a constant dividend of $5 per year each year into the future. The expected rate of return (Err) on the stock is 12%. Calculate the current market value (or price) of this stock? . Po = D - rs = 5= 0.12 = $ 41.67

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