Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
10th Edition
ISBN: 9780077835422
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 13, Problem 14PS

A common stock pays an annual dividend per share of $ 2 . 1 0 . The risk-free rate is 7 % and the risk premium for this stock is 4 % . If the annual dividend is expected to remain at $ 2 .10 , what is the value of the stock? LO 13 2

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Essentials of Investments (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY