Essay
Show numerically that the investment horizon has no bearing on current stock price. For your illustration assume investment horizons of 2 versus 3 years and the following facts: The stock has a required return of 17%, a growth rate of 7%, and has just paid a $3.74 dividend.
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2-year time horizon:
P = ($3.74 × 1.07)/...View Answer
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Correct Answer:
Verified
P = ($3.74 × 1.07)/...
View Answer
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Get Access to more Verified Answers free of charge
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