Question #53060

An investor is considering the purchase of a share of a company .The stock will pay a$ 3 dividend a year from today.This dividend is expected to grow at 10 % per year for the unforeseeable future .The investor thinks that the required return on the value of this stock is 15%. Given this assessment calculate the value of a share of the company's stock.
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Expert's answer

2015-06-18T00:00:42-0400

Answer on Question # 53060 – Economics / Finance

An investor is considering the purchase of a share of a company. The stock will pay a 33 dividend a year from today. This dividend is expected to grow at 10% per year for the unforeseeable future. The investor thinks that the required return on the value of this stock is 15%. Given this assessment calculate the value of a share of the company's stock.



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