Question
A common stock just paid an annual dividend of $2 yesterday.The dividend is expected to grow at eight percent annually for the next three years,
A common stock just paid an annual dividend of $2 yesterday.The dividend is expected to grow at eight percent annually for the next three years, after which it will grow at four percent in perpetuity.The appropriate discount rate is 12 percent.What is the price of the stock?
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Principles Of Financial Accounting
Authors: John J Wild, Ken W Shaw, Barbara Chiappetta
22nd Edition
0077632893, 9780077632892
