Unformatted text preview: 3) Texas Instruments, a firm with a Beta equal to 1.5, is poised for huge growth to the number of calculators projected to be sold to new Finance students in the upcoming years. You believe the growth rate of Texas Instrument’s dividend will be 25% for the next three years and will then grow at a more modest 6% after that. You know the market has had an average return of 14% and the risk free rate is equal to 2%. What is the price of Texas Instrument’s stock if they just paid a dividend of $5.00 per share?...
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This note was uploaded on 12/04/2011 for the course FIN 3300 taught by Professor Toddstotnitch during the Fall '11 term at Georgia State.
- Fall '11
- Corporate Finance