Question
A share of stock will pay a $3 dividend after one year, and after that dividends will grow at 5% for another 4 years. From
A share of stock will pay a $3 dividend after one year, and after that dividends will grow at 5% for another 4 years. From that point onwards, dividends will grow at 2% per year forever.
If the discount rate is 10%, what is the value of the share?
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International Financial Management
Authors: Jeff Madura
10th Edition
1439038333, 9781439038338
