Question
A firm has Div1=$0.62, Div2=$0.96, Div3=$0.84 and Div4=$0.78 for a stock. You also estimate that, after year 4, dividends will grow continually at a rate
A firm has Div1=$0.62, Div2=$0.96, Div3=$0.84 and Div4=$0.78 for a stock. You also estimate that, after year 4, dividends will grow continually at a rate of 3% per year. If the required return to hold the share is 14.6%, what is the shares current price?
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
