The AlterG Corporation currently pays $3.00 of dividends per share of common stock. The required rate of
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The AlterG Corporation currently pays $3.00 of dividends per share of common stock. The required rate of return on AlterG stock is 5%.
a. If the expected dividend growth rate is 2% per year, forever, what is the value of a share of AlterG common stock?
b. If the expected dividend growth rate is 4% per year, forever, what is the value of a share of AlterG common stock?
c. If the dividend growth rate is expected to be 4% per year of the next four years and 2% thereafter, what is the value of a share of AlterG common stock?
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Related Book For 
Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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