Two stocks, company A1 and company Z2, have the same cost of equity. A1 has a stock price of $60 and will pay a dividend
Posted: Mon Nov 15, 2021 5:16 pm
Two stocks, company A1 and company Z2, have the same cost of
equity.
A1 has a stock price of $60 and will pay a dividend at the end of
the year of
$2, and the dividends will grow at 4% rate. What is the price of 1
share of
Z2 if they will pay a dividend of $1 at the end of the year that
will grow by
5%?
equity.
A1 has a stock price of $60 and will pay a dividend at the end of
the year of
$2, and the dividends will grow at 4% rate. What is the price of 1
share of
Z2 if they will pay a dividend of $1 at the end of the year that
will grow by
5%?