Question
ABC common stock is expected to have extraordinary growth in earnings and dividends of 19% per year for 2 years, after which the growth rate
ABC common stock is expected to have extraordinary growth in earnings and dividends of 19% per year for 2 years, after which the growth rate will settle into a constant 7.40%. If the discount rate is 17% and the most recent dividend was $1.70, what should be the approximate current share price?
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
7th Edition
1439080526, 9781439080528
