Question
A firm is paying a dividend of $4.5 per share and it grows at the rate of 10% forever for5 years and stabilizes at the
A firm is paying a dividend of $4.5 per share and it grows at the rate of 10% forever for5 years and stabilizes at the rate of 6% forever thereafter. If the cost of equity is 11%, what is the value of this stock using the dividend capitalization model?
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Property Finance
Authors: David Isaac
2nd Edition
0333987144, 978-0333987148
