Question
A company's shares dividends are said to increase by 20% for 3 years, decrease by 5% for 2 years, and then stagnate forever. The required
A company's shares dividends are said to increase by 20% for 3 years, decrease by 5% for 2 years, and then stagnate forever. The required rate of return is 10%. What is the present value of these shares using the constant growth DDM?
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Empirical Finance
Authors: Sardar M. N. Islam, Sethapong Watanapalachaikul
1st Edition
3790815519, 978-3790815511
