Company A has a current stock price of S60 and is expected to pay a $2 dividend in one year, The equity cost of capital is 8.9%. What price would its stock be expected to sell for immediately after it pays the divldend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.
Company A has a current stock price of S60 and is expected to pay a $2 dividend in one year, The equity cost of capital is 8.9%. What price would its stock be expected to sell for immediately after it pays the divldend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.
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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Company A has a current stock price of S60 and is expected to pay a $2 dividend in one year, The equity cost of capital is 8.9%. What price would its stock be expected to sell for immediately after it pays the divldend? Note: Express your
answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.
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