QUESTION 13 Company D is expected to pay a $4.1 dividend at the end of the 4th year. You expect Company D's dividend to grow by 2.03% per year forever. Company D's equity cost of capital is 12.85%. What should be the price of the stock today? NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68.
QUESTION 13 Company D is expected to pay a $4.1 dividend at the end of the 4th year. You expect Company D's dividend to grow by 2.03% per year forever. Company D's equity cost of capital is 12.85%. What should be the price of the stock today? NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68.
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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