Cost of common stock: Write out the general equation for the price of the stock for a

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Cost of common stock: Write out the general equation for the price of the stock for a firm that will grow dividends very rapidly at a constant rate for the four years after the next dividend is paid and will grow dividends thereafter at a constant, but lower rate. Discuss the problems in estimating the cost of equity capital for such a stock.

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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