An investor expects a company to enjoy 8% compound annual growth for ever, and she thinks that

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An investor expects a company to enjoy 8% compound annual growth for ever, and she thinks that the appropriate rate for discounting the company’s dividends would be 14%.

She knows that the company’s most recent annual dividend was €1.50. What should be the value of the share?

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Financial Management And Real Options

ISBN: 259088

1st Edition

Authors: Jack Broyles

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Question Posted: May 22, 2024 05:02 AM

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An investor expects a company to enjoy 8% compound annual growth for ever, and she thinks that

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Financial Management And Real Options

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