Hudson Corporation will pay a dividend of $3.14 per share next year. The company pledges to increase its dividend by 5 percent per year indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’s stock today?
Stock price = D1 / required rate - growth rate
Stock price = 3.14 / 0.12 - 0.05
Stock price = 3.14 / 0.07
Stock price = $44.86
Hudson Corporation will pay a dividend of $3.14 per share next year. The company pledges to...
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