A stock trading at $55.00 per share paid an annual dividend of $1.35 per share over the last 12 month period. The dividend growth is expected to be 7% annually for the foreseeable future. What is the estimated fair value of the stock if your required rate of return is 9%? Solve it in one cell.
A stock trading at $55.00 per share paid an annual dividend of $1.35 per share over the last 12 month period. The dividend growth is expected to be 7% annually for the foreseeable future. What is the estimated fair value of the stock if your required rate of return is 9%? Solve it in one cell.
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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Transcribed Image Text:A stock trading at $55.00 per share paid an annual dividend of $1.35 per share over the last 12 month
period. The dividend growth is expected to be 7% annually for the foreseeable future. What is the
estimated fair value of the stock if your required rate of return is 9%? Solve it in one cell.
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