s EOC Problems 11-16 Question 9 of 15 ► eBook O Problem 11-16 - Dividend Discount Model In three years, a company is expected to pay its first dividend of $1.59 per share per year. At that point, the dividend is expected to grow at 5% per year indefinitely. Also suppose the required rate of return is 7%. Dividend $1.59 Growth 5% Required 7% What is the value of the stock? The value of the stock is $ Icon Key Round your answer to the nearest two decimal places.

Principles Of Pharmacology Med Assist
6th Edition
ISBN:9781337512442
Author:RICE
Publisher:RICE
Chapter1: Numerals And Fractions
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s EOC Problems 11-16
Question 9 of 15 ►
eBook
O Problem 11-16 - Dividend Discount Model
In three years, a company is expected to pay its first dividend of $1.59 per share per year. At that point, the dividend is expected to grow at 5% per
year indefinitely. Also suppose the required rate of return is 7%.
Dividend
$1.59
Growth
5%
Required
7%
What is the value of the stock?
The value of the stock is $
Icon Key
Round your answer to the nearest two decimal places.
Transcribed Image Text:s EOC Problems 11-16 Question 9 of 15 ► eBook O Problem 11-16 - Dividend Discount Model In three years, a company is expected to pay its first dividend of $1.59 per share per year. At that point, the dividend is expected to grow at 5% per year indefinitely. Also suppose the required rate of return is 7%. Dividend $1.59 Growth 5% Required 7% What is the value of the stock? The value of the stock is $ Icon Key Round your answer to the nearest two decimal places.
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