Question
A company just paid a dividend of $0.85. The dividend is expected to grow by 15% for two years, 12% for one year, 10% for
A company just paid a dividend of $0.85. The dividend is expected to grow by 15% for two years, 12% for one year, 10% for one year, and then fall to a constant rate of 4% thereafter. Assume r=12%. What is the current value of the stock, P0?
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Financial Markets And Institutions
Authors: Jeff Madura
9th Edition
1439038848, 978-1439038840
