Patimas Computers is currently paying dividends of $0.50 a share. These dividends are expected to grow at

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Patimas Computers is currently paying dividends of

$0.50 a share. These dividends are expected to grow at a rate of 20% for the next two years and at a constant growth rate of 3% thereafter. What would be the current price of Patimas Computers’ shares given a required return of 15%? Note that there is no dividend payout in the current year.

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Financial Markets And Institution

ISBN: 9781292459547

10th Global Edition

Authors: Frederic Mishkin, Stanley Eakins

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