A share of LAMA Inc.'s common stock just paid a dividend of $1.00. If the expected long-run growth rate for this stock is 5.2%, and if investors' required rate of return is 10.8%, what is the stock price?
Current price=D1/(Required return-Growth rate)
=(1*1.052)/(0.108-0.052)
which is equal to
=$18.79(Approx).
A share of LAMA Inc.'s common stock just paid a dividend of $1.00. If the expected...
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