You are investing in a share of stock. The share just paid a dividend of $7.46. The dividend has been growing and is expected to grow forever at a rate of 5.26% per year. You require a 12.89% rate of return on the stock investment. What would be a fair price/share in 8 years? (Answer to nearest $0.01)

You are investing in a share of stock. The share just paid a dividend of $7.46. The dividend has been growing and is expected to grow forever at a rate of 5.26% per year. You require a 12.89% rate of return on the stock investment. What would be a fair price/share in 8 years? (Answer to nearest $0.01)

Name: You are investing in a share of stock. The share just paid a dividend
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Description: You are investing in a share of stock. The share just paid a dividend of $7.46.The dividend has been growing and is expected to grow forever at a rate of5.26% per year. You require a 12.89% rate of return on the stock investment.What would be a fair

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3P

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