Question
ABC common stock is expected to have extraordinary growth of 20% per year for 2 years, at which time the growth rate will settle into
ABC common stock is expected to have extraordinary growth of 20% per year for 2 years, at which time the growth rate will settle into a constant 7%. If the discount rate is 14% and the most recent dividend was $1.60, what should be the approximate current share price?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
