Answer to Question #51318 in Finance for mohammed abdu
are anticipated to increase at an annual rate of 10 percent from the most recent
dividend of RM1.00. If your required rate of return is 15 percent, how much are you
willing to pay for Dwayne stock now?
P = div0/(r - g) = 1/(0.15 - 0.1) = RM20.
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