Task 2 a) Calculate the market price in equilibrium for an investment that in the period before had a dividend of SEK 10 with an expected growth rate of 3% per period indefinitely. The share has a risk-adjusted discount rate of 7%.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 12P
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Task 2
a) Calculate the market price in equilibrium
for an investment that in the period before
had a dividend of SEK 10 with an expected
growth rate of 3% per period indefinitely. The
share has a risk-adjusted discount rate of 7%.
Transcribed Image Text:Task 2 a) Calculate the market price in equilibrium for an investment that in the period before had a dividend of SEK 10 with an expected growth rate of 3% per period indefinitely. The share has a risk-adjusted discount rate of 7%.
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