Business, 15.05.2021 02:50, elha20

Consider a stock with current year dividend equal to $2.00 per share. You believe the dividend will grow 15% per year for 10 years and 4% per year thereafter. The required equity rate of return (and your hurdle rate) is 10%. What is the fair price of the stock? Assuming the market price of the stock is $70, what is the expected return?

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Consider a stock with current year dividend equal to $2.00 per share. You believe the dividend will...