Common stock value: Constant growth The common stock of Barr Labs Inc., trades for $121 per...
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Common stock value: Constant growth The common stock of Barr Labs Inc., trades for $121 per share. Investors expect the company to pay a(n) $1.39 dividend next year, and they expect that dividend to grow at a constant rate forever. If investors require a(n) 15.9% return on this stock, what is the dividend growth rate that they are anticipating? The anticipated dividend growth rate is %. (Round to two decimal places.) Common stock value: Constant growth The common stock of Barr Labs Inc., trades for $121 per share. Investors expect the company to pay a(n) $1.39 dividend next year, and they expect that dividend to grow at a constant rate forever. If investors require a(n) 15.9% return on this stock, what is the dividend growth rate that they are anticipating? The anticipated dividend growth rate is %. (Round to two decimal places.)
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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