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3. Suppose BlueSky Inc. has a current dividend of Do = $4, which is expected to shrink at the rate, 81 = 7%, for 5
3. Suppose BlueSky Inc. has a current dividend of Do = $4, which is expected to shrink at the rate, 81 = 7%, for 5 years but grow at the rate, g2 = 5%, forever. With a discount rate of r = 6%, what is the present value of the stock? (40 MARKS)
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Broadcasting Finance In Transition
Authors: Jay G. Blumler, T. J. Nossiter
1st Edition
0195050894, 978-0195050899
