Non-Constant Growth Storico plc has just paid a dividend of 2.45 per share. The company will increase

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Non-Constant Growth Storico plc has just paid a dividend of £2.45 per share. The company will increase its dividend by 20 per cent next year, and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 per cent dividend growth, after which the company will keep a constant growth rate forever. If the required return on Storico shares is 11 per cent, what will a share of equity sell for today?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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