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- VALUE OF A SHARE OF STOCK
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- wHEN AN INVESTOR BUYS A STOCK HE HOPES FOR SOME FUTURE
- RETURN, EITHER THROUGH DIVIDENDS OR CAPITAL GAINS.
- HOWEVER STOCKHOLDERS IN GENERAL,OVER THE LONG HAUL,
- ONLY GET CASH DIVIDENDS OUT OF THE STOCK. MANY WHO SUBSCRIBE
- TO THE PRECEDIMG BELIEVE THAT ANY STOCK VALUATION MODEL
- SHOULD CONSIDER ONLY DIVIDENDS.SUCH IS THE MODEL OF THIS
- PROGRAM. WE SHALL ASSUME THAT WE KNOW THE PRICE OF A SHARE
- OF A CERTAIN STOCK,THE PRESENT ANNUAL CASH DIVIDEND, AND
- AN EXPECTED GROWTH RATE FOR DIVIDENDS WHICH WE ASSUME WILL
- LAST INDEFINITELY. FROM THIS DATA WE GET OUR EXPECTED
- RATE OF RETURN ON INVESTMENT FOR THE STOCK.
- PRESS ENTER TO BEGIN?
- THE PRESENT PRICE OF 1 SHARE OF THE STOCK = ? 12.34
- THE PRESENT ANNUAL CASH DIVIDEND = ? 2.98
- EXPECTED RATE OF DIVIDEND GROWTH(IN %) = ? 3.45
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- EXPECTED LONG RUN RATE OF RETURN = 28.4323 %
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- PRESS ENTER FOR MORE STOCKS? -1
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