Stock Valuation According to the 2018 Value Line Investment Survey, the growth rate in dividends for IBM for the next fi
Posted: Sun Jun 05, 2022 7:32 am
Stock Valuation According to the 2018 Value Line Investment Survey, the growth rate in dividends for IBM for the next five years is expected to be 5 percent. Suppose IBM meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 3.5 percent indefinitely. Assume investors require a return of 10 percent on IBM stock. Is the stock priced correctly? What factors could affect your answer?