CORPORATE FINANCE- ACCESS >C<
CORPORATE FINANCE- ACCESS >C<
12th Edition
ISBN: 9781307447248
Author: Ross
Publisher: MCG/CREATE
Question
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Chapter 9, Problem 30QAP

a.

Summary Introduction

Adequate information:

Current dividend per period (D0) = $3.80

Growth rate of dividend (g) = 4.5%

Required rate of return (R) = 11%

To determine: Current price of the stock

Introduction: The dividend growth model computes the stock price with the help of the growth rate, required rate, and dividend for the next period.

b.

Summary Introduction

Adequate information:

Frequency of payments in a year = 4

Current dividend per period (D0) = $3.80

Growth rate of dividend (g) = 4.5%

Required rate of return (R) = 11%

To determine: Current price of the stock. Also, determine whether this model of stock valuation is appropriate or not.

Introduction: The dividend growth model computes the stock price with the help of the growth rate, required rate, and dividend for the next period.

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Chapter 9 Solutions

CORPORATE FINANCE- ACCESS >C<

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