Duffs Co. is growing quickly. Dividends are expected to grow at a 30 percent rate for the
Question:
Duffs Co. is growing quickly. Dividends are expected to grow at a 30 percent rate for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 13 percent and the company just paid a $1.80 dividend, what is the current share price?
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With supernormal dividends we find the price of the stock when the dividends level off at ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0071051606
8th Canadian Edition
Authors: Stephen A. Ross, Randolph W. Westerfield
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