Apex Co. stock just paid $1.50 dividend per share. The market expects that the dividend will...
Apex Co. stock just paid $1.50 dividend per share. The market expects that the dividend will grow at 5% annually for the next 2 years and then 3% annually forever. Assuming a required return of 10%, how much is the present value of the stock?
Homework Answers
Price at 2 years (discounted)= 2.8
price after 2 years (discounted)= 20.11
P0= 20.11 + 2.8 = 22.91
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Apex Co. stock just paid $1.50 dividend per share. The market
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