Question
10. Suppose we have a firm that is assumed to have a dividend growth rate of 22% for the next two years, then 5% per
10. Suppose we have a firm that is assumed to have a dividend growth rate of 22% for the next two years, then 5% per year afterward. The cost of equity is assumed to be 16%. Assume that the stock recently paid a dividend of $8. The Compute the value of the stock.
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Forest Resource Economics And Finance
Authors: W. David Klemperer
1st Edition
0974021105, 978-0974021102
