Economic conditions for the foreseeable future


Question:

Anybody Coal Co. expects tough economic conditions for the foreseeable future. Their current beta is 1.2, the risk-free rate is 10% and the required rate of return on the market is 15%. Anybody paid a dividend of $4 today. Analysts are predicting a steady decline of 6% per year in dividends for the foreseeable future. What is the most you would be willing to pay for this stock?

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Macroeconomics: Economic conditions for the foreseeable future
Reference No:- TGS02096449

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