What is the value of a stock which pays a $4 dividend/year (first dividend in one...

What is the value of a stock which pays a $4 dividend/year (first dividend in one year), not growing until year 10, then growing at 5% per year from year 10 to 11 and every year thereafter, if the discount rate is 10%?

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jeff jeffy answered 1 year ago

A stock pays a dividend of $50 at the end of the first year, with each...

A stock pays a dividend of $50 at the end of the first year, with each subsequent annual dividend being 5% greater than the preceding one. Mandy buys the stock at a price to earn effective annual yield of 10%. Immediately after receiving the 10th dividend, Mandy sells the stock for a price of P. Her effective annual yield over the 10-year period was 8%. Calculate P. (Answer $1,275.54)

Assume that you have a stock that pays a dividend of 4 dollars one year from...

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A stock costs $80 and pays a $4 dividend each year for three years. a) If...

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An all equity firm pays a dividend of $1 in first year, a dividend of $2...

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