XYZ firms expects to pay $3.50 per share dividends this year. It expects growth in dividend...

 

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XYZ firms expects to pay $3.50 per share dividends this year. It expects growth in dividend to be 5% until year 6, followed by 2% growth forever. Cost of equity is 10% and WACC is 8%. Calculate p. XYZ firms expects to pay $3.50 per share dividends this year. It expects growth in dividend to be 5% until year 6, followed by 2% growth forever. Cost of equity is 10% and WACC is 8%. Calculate p.

Answer rating: 100% (QA)

To calculate the price P of the stock we can use the Gordon Growth Model also kno... View the full answer