Question
a. YY Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 17% during the next
a. YY Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 17% during the next 3 years, at 13% in the 4th year, and at a constant rate of 5% thereafter. YYs last dividend was $2.25, and the required rate of return on the stock is 9%. Calculate the value of the stock today. (6 Marks)
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Stats Data And Models
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
4th Edition
321986490, 978-0321989970, 032198997X, 978-0321986498
