A stock is expected to pay a dividend of $1.75 at the end of the year (i.e., D1=$1.75), and it should continue to grow at a constant rate of 3% a year. If its required return is 13%, what is the stock's expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
A stock is expected to pay a dividend of $1.75 at the end of the year (i.e., D1=$1.75), and it should continue to grow at a constant rate of 3% a year. If its required return is 13%, what is the stock's expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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