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A company currently pays a dividend of $2.25 per share (D0). Analysts estimate that the company's dividend will grow 25% next year (yr 1), 15%
A company currently pays a dividend of $2.25 per share (D0). Analysts estimate that the company's dividend will grow 25\% next year (yr 1), 15\% the next year (yr 2), then at a constant annual rate of 3% thereafter. If the cost of equity for the firm is 14%, what is your estimate of the current stock price? $28.26 $21.07 $30.29 $36.33
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The Finance Book
Authors: Stuart Warner, Si Hussain
2nd Edition
1292401982, 978-1292401980
