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Valuing a share of a stock (P) that pays a constant dividend forever: Assume you expect the dividend to be $1.50 in one year (not right away, but wait one year out. Required rate of return is 5%. What is the Price of a share of this stock? $42 ○ $1500 $30 None of the above 易

Valuing a share of a stock (P) that pays a constant dividend forever: Assume you expect the dividend to be $1.50 in one year (not right away, but wait one year out. Required rate of return is 5%. What is the Price of a share of this stock? $42 ○ $1500 $30 None of the above 易

Essentials Of Investments
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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Valuing a share of a stock (P) that pays a constant dividend forever: Assume you expect the dividend to be $1.50 in one year (not right away, but wait one year out. Required rate of return is 5%. What is the Price of a share of this stock? $42 ○ $1500 $30 None of the above 易
Transcribed Image Text:Valuing a share of a stock (P) that pays a constant dividend forever: Assume you expect the dividend to be $1.50 in one year (not right away, but wait one year out. Required rate of return is 5%. What is the Price of a share of this stock? $42 ○ $1500 $30 None of the above 易
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