Question
Assume that ABC Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another three years and then
Assume that ABC Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another three years and then fall to 5% p.a., where it is expected to remain indefinitely. Given that the required return on ABC's shares is 12% and that the last dividend of 50 cents has just been paid, the price of ABC's shares will be:
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
