ou are thinking about investing in stock in a company who paid a dividend of $10 this year and whose dividends you expect to grow at 4 percent a year. The risk-free rate is 3 percent and you require a risk premium of 5 percent. If the price of the stock in the market is $200 a share, should you buy it
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Home » Business » ou are thinking about investing in stock in a company who paid a dividend of $10 this year and whose dividends you expect to grow at 4 percent a year. The risk-free rate is 3 percent and you require a risk premium of 5 percent.