Question: Example: The Dividend Discount Model Suppose that a stock will pay three annual dividends of $200 per year; the appropriate risk-adjusted discount rate, k, is

Example: The Dividend Discount Model Suppose that a stock will pay three annual dividends of $200 per year; the appropriate risk-adjusted discount rate, k, is 8%. In this case, what is the value of the stock today? P. = D D2 D (1+k) (1+k) (1+k) + +

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