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answer must = $29.01 Problem: The company projects the earnings and dividends to grow at 8% per year for the first 3 years, but after
answer must = $29.01
Problem: The company projects the earnings and dividends to grow at 8% per year for the first 3 years, but after that the company will have constant growth of 4%. The current dividend was $1.50 per share. What is the price of the company's stock today? Assume that the investors require a 10% rate of return. Answer: $29.01 Step by Step Solution
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
