jk stock currently sells for $50 a share. the stock has just
paid a dividend of...
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jk stock currently sells for $50 a share. the stock has justpaid a dividend of $2 a share. the dividend is expected to grow ata constant rate of 6% per year. what is the stock price that wouldbe expected in one year from now? what is the required rate ofreturn on jks stock?.
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Solution Calculation of Required rate of return of stock As per the Gordon growth Model price of a stock is calculated using the following formula P0 D0 1 g ke g Where P0 Current Price of the stock D0 Dividend paid in Year 0 ie
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