Tina's Medical Equipment Company paid a $2.25 common stock dividend last year. The company's policy is to allow its dividend to grow at 5 percent per year indefinitely. What is the value of the stock if the required rate of return is 8 percent?
What will be an ideal response?
P = D1 / (r - g) = $2.25 × (1 + 0.05) / (0.08 - 0.05) = $78.75
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Answer the following statement true (T) or false (F)
The complement of the union of two events is the intersection of their complements
Indicate whether the statement is true or false