You own shares of Ball stock which is expected to pay its first dividend 4 years from
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Question:
You own shares of Ball stock which is expected to pay its first dividend 4 years from today in the amount of $5 per share. Over the next year (the 5th year), the dividend will grow by 10% after which the growth rate would be a constant rate of 2% per year, forever. The appropriate discount rate for Ball's stock is 12%.
What should a share of Ball sell for today?
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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