Valuation of a Constant Growth Assignment | Homework For You
May 22nd, 2020
VALUATION OF A CONSTANT GROWTH STOCK
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Valuation of a Constant Growth Assignment | Homework For You
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A stock is expected to pay a dividend of $2.00 at the end of the year (i.e., D1 = $2.00), and it should continue to grow at a constant rate of 4% a year. If its required return is 15%, what is the stock’s expected price 1 years from today? Round your answer to two decimal places. Do not round your intermediate calculations. Get Finance homework help today
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