Question
At year-end 2019, the financial consensus was that ABCs earnings and dividends will grow at 30%, 23.33%, 16.67%, and 10% for the next four years
At year-end 2019, the financial consensus was that ABCs earnings and dividends will grow at 30%, 23.33%, 16.67%, and 10% for the next four years respectively, after which growth would be 10% forever. Analysts also projected a required rate of return of 20%. The current dividend was $0.50.
The value of ABC stock at the terminal year 4 is:
A. $8.58 B. $9.23 C. $10.28
D. $10.84
E. $11.05
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Mission Ready Finances Proven Principles To Guide Your Story To Financial Freedom
Authors: Marco Parzych
1st Edition
173321531X, 978-1733215312
