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Showing posts with label IP Inc. Show all posts
Showing posts with label IP Inc. Show all posts

Sunday, July 12, 2015

IP Inc is expected to pay $1.70 dividends next year

IP Inc is expected to pay $1.70 dividends next year. The dividend growth rate is expected to be 7% forever. If the required rate of return for IP is 10% calculate the price of the stock using the constant growth model. If the stock is currently selling for $63, indicate whether the stock is underpriced or overpriced.

Click here for the solution: IP Inc is expected to pay $1.70 dividends next year