A stock is expected to pay a dividend of $3 at the end of this year (this is Div1), and it should continue to grow at a constant rate of 6.7% per year. If its required return is 11.9%, the stock's price today should be $______________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35).
A stock is expected to pay a dividend of $3 at the end of this year (this is Div1), and it should continue to grow at a constant rate of 6.7% per year. If its required return is 11.9%, the stock's price today should be $______________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35).
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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A stock is expected to pay a dividend of $3 at the end of this year (this is Div1), and it should continue to grow at a constant rate of 6.7% per year. If its required return is 11.9%, the stock's price today should be $______________.
Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35).
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