Dividend Assignment | Professional Writing
May 20th, 2020
Assume that a firm’s common stock can be valued using the constant dividend growth model. As an analyst, you expect that the return on the market will be 15% and the risk-free rate is 5%.
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Dividend Assignment | Professional Writing
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You have estimated that the dividend next period will be $50, the firm will grow at a constant 6%, and the firm beta is 0.70. The common stock is currently selling for $45.00 in the market place. The firm’s stock is overpriced or not.
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