Sudsy inc recently paid an annual dividend of 100 per share


Sudsy Inc. recently paid an annual dividend of $1.00 per share. Analysts expect that amount to be paid for three years after which dividends will grow at a constant 5% per year indefinitely. The shares are currently trading at $20, and investors require a 15% return on similar issues. Has the stock market properly priced Sudsy’s shares?

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Financial Management: Sudsy inc recently paid an annual dividend of 100 per share
Reference No:- TGS02157417

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