Suppose the Jacksonville State Bank paid a dividend this year of $3.00 per share. Dividends are...
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Suppose the Jacksonville State Bank paid a dividend this year of $3.00 per share. Dividends are expected to grow at a rate of 5 percent per year from now on. Given the risk of Jacksonville State Bank, the correct discount rate for this bank is 14 percent. What should the value of Jacksonville State Bank's stock be in the market? Suppose the Jacksonville State Bank paid a dividend this year of $3.00 per share. Dividends are expected to grow at a rate of 5 percent per year from now on. Given the risk of Jacksonville State Bank, the correct discount rate for this bank is 14 percent. What should the value of Jacksonville State Bank's stock be in the market?
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To calculate the value of Jacksonville State Banks stock we can use the dividend discount model DDM ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
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