1 Suppose that todays stock price is 6763 If the required ra

1. Suppose that today\'s stock price is $67.63. If the required rate on equity is 23.7% and the growth rate is 4.8%, compute the expected dividend (i.e. compute D1)

67.63 / 0.237 = 284.092827

and

67.63 / 0.048 = 1408.9583

so the expected dividend = 1408.9583 - 284.092827 = 1124.8655

$1. Suppose that today\'s stock price is $67.63. If the required rate on equity is 23.7% and the growth rate is 4.8%, compute the expected dividend (i.e. compute$

1 Suppose that todays stock price is 6763 If the required ra

Solution

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