Chapter 9: Valuing Stocks - Baylor University

1) equality of price and value must hold for both buyer and seller to be willing to trade 2) most stocks pay dividends quarterly Ex. Assume that one year from today, you expect Cardgil Inc. to pay a dividend of $1.50 per share and have a price of $25 per share. You estimate that the equity cost of capital for Cardgil is 8%. What is the value of ... ................
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