Question
A company is currently experiencing a very successful period and will pay its first dividend of $0.15 per share. Due to the companys success, the
A company is currently experiencing a very successful period and will pay its first dividend of $0.15 per share. Due to the companys success, the dividend is expected to grow at a rate of 18.50% each year for the next four years. Then, it will level off and grow at a constant rate of 7.25% each year. Assume the discount rate for this company is 9.85%.
What is the value of this stock?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
