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Title: On a certain date, Hasbro has a stock price of $37.50, pays a dividend of $0.64, and has an equity ... Post by: kaarnold98 on Jul 7, 2019 On a certain date, Hasbro has a stock price of $37.50, pays a dividend of $0.64, and has an equity cost of capital of 8%. An investor expects the dividend rate to increase by 6% per year in perpetuity. He then sells all stocks that he owns in Hasbro. Given Hasbro's share price, was this a reasonable action?
▸ No, since the constant dividend growth rate gives a stock estimate of $37.50. ▸ Yes, since the constant dividend growth rate gives a stock estimate greater than $37.50. ▸ No, since the constant dividend growth rate gives a stock estimate greater than $37.50. ▸ No, since the difference between his calculated stock price and the actual stock price most likely indicates that his estimate of dividend growth rate was incorrect. Title: On a certain date, Hasbro has a stock price of $37.50, pays a dividend of $0.64, and has an equity ... Post by: linds on Jul 7, 2019 Content hidden
Title: On a certain date, Hasbro has a stock price of $37.50, pays a dividend of $0.64, and has an equity ... Post by: kaarnold98 on Jul 7, 2019 This calls for a celebration :raised_hands:
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