Question
4. You have a stock which pays a $1.45 dividend which is expected to grow at 15% for the next five years, then at a
4. You have a stock which pays a $1.45 dividend which is expected to grow at 15% for the next five years, then at a constant 6% into the future, the discount rate is 11%. (Round Up, Two Decimals)
Answer is a. $44.77
Can you help me get to this answer?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 Identify the formula Were dealing with a stock with a growing dividend so we need to use a dividen...
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
