City Garden Suppliers paid a $2 dividend yesterday. It is expected that the dividend will grow at 9.5 percent per year for 3 years, 7 percent per year for 12 years, and then at 5.75 percent per year thereafter. If the investors' expected rate of return is 12.5 percent, what is the stock worth today? Hint Use the present value formula for a growing annuity [-] (Do not round intermediate calculations. Round your answer to 2 decimal places.) Today stock is worth $
City Garden Suppliers paid a $2 dividend yesterday. It is expected that the dividend will grow at 9.5 percent per year for 3 years, 7 percent per year for 12 years, and then at 5.75 percent per year thereafter. If the investors' expected rate of return is 12.5 percent, what is the stock worth today? Hint Use the present value formula for a growing annuity [-] (Do not round intermediate calculations. Round your answer to 2 decimal places.) Today stock is worth $
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
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