Question
A company will pay the following dividends per share in the next three years respectively: $1.00, $1.20, and $1.60. After year 3 the company will
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A company will pay the following dividends per share in the next three years
respectively: $1.00, $1.20, and $1.60. After year 3 the company will grow its dividend at 2% for 5 years. Then, the company will maintain a constant dividend of $2.75 each year forever. If the required return on this stock is 12% what is the stock price today?
A company will pay the following dividends per share in the next three years
respectively: $1.00, $1.20, and $1.60. After year 3 the company will grow its dividend at 2% for 5 years. Then, the company will maintain a constant dividend of $2.75 each year forever. If the required return on this stock is 12% what is the stock price today?
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick
1st Edition
0470074280, 9780470074282
