Question ameritech corporation paid dividends per share of, Ask an Expert

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Question: Ameritech Corporation paid dividends per share of $3.56, and dividends are expected to grow 5.5% a year forever. The stock has a beta of 0.90, and the Treasury bond rate is 6.25%. (Risk premium is 5.5 %.)

What is the value per share, using the stable growth model?

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Category:- Basic Finance
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