Business, 17.10.2020 14:01, gshreya2005

Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock

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Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you jus...