What is the value of the firm if interest rate in economy
Problem
A firm pays a dividend of $1 per share next year. The dividend is expected to grow at an annual rate of 2%. What is the value of the firm if the interest rate in the economy is 5%?
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The dividend is expected to grow at an annual rate of 2%. What is the value of the firm if the interest rate in the economy is 5%?
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