question archive You believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year
You believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year
Subject:FinancePrice:2.87 Bought7
You believe that the Non-stick Gum factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect dividends to grow at the rate of 6% a year in perpetuity. If you require a return of 12% on your investment, how much should you be prepared to pay for the stock?
