Question
ABC Company currently pays a dividend of $1.25 per share, D 0 =1.25. It is estimated that the companys dividend will grow at a rate
ABC Company currently pays a dividend of $1.25 per share, D0=1.25. It is estimated that the companys dividend will grow at a rate of 25 percent per year for the next 3 years, then the dividend will grow at a constant rate of 8 percent thereafter. The market rate of return is 10 percent. What would you estimate is the stocks current price?
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Financial Shenanigans How To Detect Accounting Gimmicks And Fraud In Financial Reports
Authors: Howard M. Schilit, Jeremy Perler, Yoni Engelhart
4th Edition
126011726X, 9781260117264
