Two-Stage Dividend Growth Model Chartreuse County Choppers plc is experiencing rapid growth. The company expects dividends to

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Two-Stage Dividend Growth Model Chartreuse County Choppers plc is experiencing rapid growth. The company expects dividends to grow at 20 per cent per year for the next 11 years before leveling off at 5 per cent into perpetuity. The required return on the company’s equity is 14 per cent. If the dividend per share just paid was £1.74, what is the share price?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

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

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