Question
A company just paid a dividend of $1.50 and expects high growth of 20% the next two years and then constant growth of 5% thereafter.
A company just paid a dividend of $1.50 and expects high growth of 20% the next two years and then constant growth of 5% thereafter. If the required rate of return associated with this stock is 12%, what is the value of the stock today?
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
