What price are you willing to pay for the stock
Problem:
You are considering buying a stock with an expected dividend next year of $2, and a long-term growth rate of 10%. If your required rate of return is 14%, what price are you willing to pay for the stock?
Now Priced at $20 (50% Discount)
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If your required rate of return is 14%, what price are you willing to pay for the stock?
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I feel that this course has done a pretty good job of setting us up for success in graduate school.
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