You estimate that the company will pay dividends for the first time in five years. The dividend
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Question:
You estimate that the company will pay dividends for the first time in five years. The dividend will be $0.50 per share. You expect the dividend to grow 8% per year indefinitely at that date. In companies like this, the required return is 15%.
What is the current price of the stock?
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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