Question
A company will not pay a dividend for the first 2 years. In 3 years they anticipate that dividend will be $5 and it will
A company will not pay a dividend for the first 2 years. In 3 years they anticipate that dividend will be $5 and it will grow 20% for one year and then have constant growth of 5% forever. If the required rate of return for this stock is 13%, what is the value of the stock today?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
