8. Constant-growth DCF model (S4.4) Company Zs earnings and dividends per share are expected to grow indefinitely

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8. Constant-growth DCF model (S4.4) Company Z’s earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year’s dividend is $10 and the cost of equity is 8%, what is the current stock price?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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