Question
23: The ABC Company's last earnings per share and dividend payout ratios were $20 and 20% respectively. Its dividend growth rate is expected to be
23:
The ABC Company's last earnings per share and dividend payout ratios were $20 and 20% respectively. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return is 12%. What is the best estimate of the current stock price?
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Private Equity Value Creation Analysis Volume I
Authors: Michael David Reinard
1st Edition
1736077821, 978-1736077825
