Question
1.Bleeding Gum Saxophone, Inc just paid a $1.50 dividend (D 0 = 1.50). It is expected to grow at 15% over the next year and
1.Bleeding Gum Saxophone, Inc just paid a $1.50 dividend (D0= 1.50). It is expected to grow at 15% over the next year and then at 5% per year thereafter. The required rate of return on the stock is 8%. What is your estimate of the stock's current price?
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Financial Modeling
Authors: Simon Benninga
2nd Edition
0262024829, 9780262024822
