Question
A stock will pay a dividend of $2.8 exactly one year from now. You expect dividends to grow at 17% for the following 2 years
A stock will pay a dividend of $2.8 exactly one year from now. You expect dividends to grow at 17% for the following 2 years and then a constant 4.1% every year thereafter. If the stock's required rate of return is 13.3%, what is a fair price for the stock today?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
