Question
Beachmaster Suntan Oils dividend is expected to grow at a 20% rate each of the next 2 years. After that, dividend growth is expected to
Beachmaster Suntan Oils dividend is expected to grow at a 20% rate each of the next 2 years. After that, dividend growth is expected to normalize at about 8.5% annually. Beachmaster just paid a $2.25 annual dividend per share. The require rate of the return of the stock is 10%.
5.What are the present values of D1, D2, and P2?
6.What is your estimated stock price today?
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Handbook Of Income Distribution Volume 2A
Authors: Anthony B. Atkinson, Francois Bourguignon
1st Edition
0444594280, 978-0444594280
