Question
ABC is a new company and won't be paying dividend for the next five years. In year 6 it will pay a $3 dividend, then
ABC is a new company and won't be paying dividend for the next five years. In year 6 it will pay a $3 dividend, then a $5 dividend and a $7 dividend year 8. Afterwards dividend will slow to 2% growth. Investors want a 10% return. What is stock price now?
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Introductory Statistics
Authors: Prem S. Mann
8th Edition
9781118473986, 470904100, 1118473981, 978-0470904107
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