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3. A company currently pays a dividend of 2 EUR per share (D0 = 2 EUR). It is estimated that the companys dividend will grow
3. A company currently pays a dividend of 2 EUR per share (D0 = 2 EUR). It is estimated that the companys dividend will grow at a rate of 5% per year for the next 2 years, then at a constant rate of 2,5% thereafter. The companys stock has a Beta of 1,2, the Risk-free rate is 1%, and the market risk premium is 4%. What is your estimate of the stocks current price
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
