Grieb Electronics has been undergoing rapid growth for the last few years. The current dividend of $2
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Grieb Electronics has been undergoing rapid growth for the last few years. The current dividend of $2 per share is expected to grow at the rapid rate of 20 percent a year for the next three years. After that time, Grieb’s dividend growth is expected to slow to a more normal rate of 7 percent a year for the indefinite future. Because of the risk involved in such rapid growth, the required rate of return on this stock is 22 percent. Calculate the implied price for Grieb Electronics.
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Related Book For
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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