You are investing in a share of stock. The share will pay a dividend of $7.85...
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You are investing in a share of stock. The share will pay a dividend of $7.85 at the end of the first year. The dividend is expected to grow forever at a rate of 3.33% per year. You require a 9.14% rate of return on the stock investment. What is a fair price (or, value) for this share of stock? You are investing in a share of stock. The share will pay a dividend of $7.85 at the end of the first year. The dividend is expected to grow forever at a rate of 3.33% per year. You require a 9.14% rate of return on the stock investment. What is a fair price (or, value) for this share of stock?
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Answer rating: 100% (QA)
To calculate the fair price or value of the share of stock we can use the Gordon Growth Model also k... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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