Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $25.00, $15.00, $6.60 and $3.10. Afterwards, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share price
Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $25.00, $15.00, $6.60 and $3.10. Afterwards, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share price
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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