Information available regarding the future of firm

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Problem: Assume IBM is expected to pay a total cash dividend of $3.29 next year and dividends are expected to grow indefinitely by 3.4 percent a year. Assume the required rate of return (i.e. equity holder's opportunity cost of capital) is 9 percent. Assuming this is the best information available regarding the future of this firm, what would be the most economically rational value of the stock today

Reference no: EM132421294

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