CORPORATE FINANCE - LL+CONNECT ACCESS
12th Edition
ISBN: 9781264054961
Author: Ross
Publisher: MCG
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6. Calculate the price of a
dividend paying stock
using the following
information, assuming the
price is equal to the present
value of all future dividends
one will receive from
owning the stock. (Hint:
treat the stock as a growing
perpetuity)
Dividend
$4.50
Growth rate
2%
Required return
12%
*
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