Question 10 NFLX just paid a dividend of $4 per share. Analysts expect its dividend to grow at 29% per year for the next three years and then 4% per year thereafter. If the required rate of return on the stock is what is the current value of the stock? mund your answer to the nearest two decimals if needed. Do not type the $ symbol.
Question 10 NFLX just paid a dividend of $4 per share. Analysts expect its dividend to grow at 29% per year for the next three years and then 4% per year thereafter. If the required rate of return on the stock is what is the current value of the stock? mund your answer to the nearest two decimals if needed. Do not type the $ symbol.
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:D Question 10
NFLX just paid a dividend of $4 per share. Analysts expect its dividend to grow at 29% per year for
the next three years and then 4% per year thereafter. If the required rate of return on the stock is
6%, what is the current value of the stock?
Round your answer to the nearest two decimals if needed. Do not type the $ symbol.
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