26. IBIS Corporation has had dividends grow.T from $2.51? per share to $5.513 per share over the last 10 years (the $6.50 per share dividend was paid yesterday; that is, Do = $5.513). This compounded annual growth rate in dividends is expected to continue into the future forever. Ifthe eun’en1 market price of IBIS’s stock is $45.flfl per share, what rate of return do investors expect to receive florn buying IBIS stock?
26. IBIS Corporation has had dividends grow.T from $2.51? per share to $5.513 per share over the last 10 years
(the $6.50 per share dividend was paid yesterday; that is, Do = $5.513). This compounded annual growth
rate in dividends is expected to continue into the future forever. Ifthe eun’en1 market price of IBIS’s
stock is $45.flfl per share, what rate of return do investors expect to receive florn buying IBIS stock?