Question
A firm does not pay a dividend. It is expected to pay its first dividend of $0.75 per share in two years. This dividend will
| A firm does not pay a dividend. It is expected to pay its first dividend of $0.75 per share in two years. This dividend will grow at 14 percent indefinitely. Use a 15.5 percent discount rate. |
| Compute the value of this stock. (Round your answer to 2 decimal places.) |
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
