Question
A firm does not pay a dividend. It is expected to pay its first dividend of $0.27 per share in two years. This dividend will
| A firm does not pay a dividend. It is expected to pay its first dividend of $0.27 per share in two years. This dividend will grow at 13 percent indefinitely. Use a 14.5 percent discount rate. |
| Compute the value of this stock. (Round your answer to 2 decimal places.) |
| Stock Value | $ |
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Finance Directors Handbook
Authors: Glynis D Morris, Sonia McKay, Andrea Oates
5th Edition
1566768691, 978-1566768696
