Question: Host Corp. will pay a $ 2 . 4 0 dividend ( D 1 ) in the next 1 2 months. The required rate of
Host Corp. will pay a $ dividend D in the next months. The required rate of return Ke is percent and the constant growth rate g is percent.
Compute the stock price P
If Ke goes up to percent, and all else remains the same, what will be the stock price P
Now assume in the next year, D $ Ke percent, and g is equal to percent. What is the price of the stock?
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