Mathematics, 24.06.2021 14:00 gujacksongu6
Consider the following stocks: • Stock A is expected to pay a dividend of £4 forever; • Stock B is expected to pay a dividend of £2 next year, £2.50 in year 2, with dividend growth expected to be 3% per annum thereafter. If the required return on similar equities is 9%, calculate the price of each stock.
Answers: 1
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Consider the following stocks: • Stock A is expected to pay a dividend of £4 forever; • Stock B is e...