A firm is currently paying a dividend of $2 per share. It is expected to grow its dividend at the rate of 10 percent per
A firm is currently paying a dividend of $2 per share. It is expected to grow its dividend at the rate of 10 percent per annum for the next three years. After three years, the dividend is expected to grow at a constant rate of 5 percent per year indefinitely. If the investors require a return of 7 percent, then what should be the share price?
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Authors: Doris Barrell
15th Edition
1475462077, 978-1475462074
