FINANCE 583 - The dividend-growth model may be used to value stock
Question # 00622144
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Updated on: 11/25/2017 02:13 PM Due on: 11/25/2017
- The dividend-growth model may be used to value stock:
V= D(o)(1+g)
k-g
- What is value of a stock if: D(o) = $ 2, k= 10%, g=6%
- What is the value of this stock if the dividend increased to $ 3 dollars and the other variables remained constant?
- What is the value of this stock if the required return declines to 7.5% and the other variables remain constant ?
- What is the value of the stock if the growth rate declines to 4% and the other variable remain constant
- What is the value of this stock if the dividend is increased to $ 2.30, growth rate declines to 4% and the required return remains at 10% ?
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Rating:
5/
Solution: FINANCE 583 - The dividend-growth model may be used to value stock