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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Suppose nominal income in year 2000 is $3000 and the price index in year 2000 is 150, what is the real income of year 2000?
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A firm pays a dividend of $1 per share next year. What is the value of the firm if the interest rate in the economy is 5%?
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