LG just paid a $2 annual dividend on its common stock. The dividend is expected to increase

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LG just paid a $2 annual dividend on its common stock. The dividend is expected to increase 5.5% per year indefinitely. If the required rate of return is 7.8%, What is the the stock's value next year?

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Financial management theory and practice

ISBN: 978-1439078099

13th edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Posted Date: Apr 27, 2024 11:25 AM

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LG just paid a $2 annual dividend on its common stock. The dividend is expected to increase

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To find the stocks value next year you can use the Gordon Growth Model also known a... View the full answer

Financial management theory and practice

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