Micro Systems just paid an annual dividend of $0.2 per share. Its dividend is expected to double for the next four years (D1 through D5), after which it will grow at a more modest pace of 2% per year. If the required return is 10%, what is the current price?
Micro Systems just paid an annual dividend of $0.2 per share. Its dividend is expected to double for the next four years (D1 through D5), after which it will grow at a more modest pace of 2% per year. If the required return is 10%, what is the current 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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Micro Systems just paid an annual dividend of $0.2 per share. Its dividend is expected to double for the next four years (D1 through D5), after which it will grow at a more modest pace of 2% per year.
If the required return is 10%, what is the current price?
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