Summit Systems will pay an annual dividend of $1.50 this year. If you expect Summit's dividend to grow by 6% per year, what is its price per share if the firm's equity cost of capital is 11%? The price per share is $ (Round to the nearest cent.).
Summit Systems will pay an annual dividend of $1.50 this year. If you expect Summit's dividend to grow by 6% per year, what is its price per share if the firm's equity cost of capital is 11%? The price per share is $ (Round to the nearest cent.).
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
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Transcribed Image Text:Summit Systems will pay an annual dividend of $1.50 this year. If you expect Summit's dividend to grow by 6% per year, what is its price per share if the firm's equity cost of capital is 11%?
The price per share is $
(Round to the nearest cent.)
11
SAMSUNG
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