A stock is trading at $[p0] per share. The stock is expected…
A stock is trading at $[p0] per share. The stock is expected to have a year-end dividend of $[d1] per share, and it is expected to grow at some constant rate gLthroughout time. The stock’s required rate of return is [r]% (assume the market is in equilibrium with the required return equal to the expected return). What is your forecast of gL? Round your answer to two decimal places.
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