How much would you pay for the bbc stock


The Baron Basketball Company (BBC) earned $9.75 a share last year and paid a dividend of $5.25 a share. Next year, you expect BBC to earn $10.75 and continue its payout ratio. Assume that you expect to sell the stock for $134.50 a year from now. If you require 12.25 percent on this stock (required return), how much would you pay for the BBC stock?

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Finance Basics: How much would you pay for the bbc stock
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