Dividend discount model
Question: How much are you willing to pay for one share of stock if the company just paid an dollar .80 yearly dividend, the dividends increase by 4% yearly & you need an 8% rate of return?
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How much are you willing to pay for one share of stock if the company just paid an dollar .80 yearly dividend, the dividends increase by 4% yearly & you need an 8% rate of return?
Illustrate what happens to demand, if the price of a good increases
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