PPT Slide

D0 = 2.00 (already paid).

D1 = D0(1.06) = $2.12.

P0 = = = $21.20.

Last dividend = $2.00; g = 6%.

What is the value of Bon Temps’ stock

given ks = 16%?

^

D1

ks - g

$2.12

0.16 - 0.06

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