Question
A companys dividend is expected to grow at 20% for the next six years. After that, the growth is expected to be 3% forever. If
A companys dividend is expected to grow at 20% for the next six years. After that, the growth is expected to be 3% forever. If the required return is 10%, what is the value of the stock at time 6? The dividend just paid was $1.
a) 48.08
b) 2.99
c) 24.08
d) 3.08
e) 43.94
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th International Edition
1259094901, 9781259094903
