10.Santa Klaus Toys just paid a dividend of $3.20 per share. The required return is 9.4 percent and the perpetual dividend growth rate is 4.1 percent. What price should this stock sell for five years from today?

10.Santa Klaus Toys just paid a dividend of $3.20 per share. The required return is 9.4 percent and the perpetual dividend growth rate is 4.1 percent. What price should this stock sell for five years from today?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

10.Santa Klaus Toys just paid a dividend of $3.20 per
share. The required return is 9.4 percent and the
perpetual dividend growth rate is 4.1 percent. What price
should this stock sell for five years from today?

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