Question
1. Puyau Enterprises recently paid a dividend, D 0 , of $3.00. It expects to have nonconstant growth of 15 percent for 2 years followed
1. Puyau Enterprises recently paid a dividend, D0, of $3.00. It expects to have nonconstant growth of 15 percent for 2 years followed by a constant rate of 6 percent thereafter. The firms required return is 8 percent. What is the stocks intrinsic value today? | |||||
I know the answer is $186.88 but I don't get how to solve it. May I know step-by-step?
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