Question
A firm just paid a dividend yesterday of $5.00. The market consensus is that the firm will be able to grow the dividend at 10%
A firm just paid a dividend yesterday of $5.00. The market consensus is that the firm will be able to grow the dividend at 10% for the next two years, and then after two years the dividend growth will return to 2% and will be 2% forever. If the correct discount rate to use in valuing the stock is 15%, what is the value of the stock today
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
