BioSci, Inc., a biotech firm has forecast the following cash flows for the next three years: 1.5, 1.8, and 2.0. The company then expects to
BioSci, Inc., a biotech firm has forecast the following cash flows for the next three years: 1.5, 1.8, and 2.0. The company then expects to grow at a constant rate of 7 percent for the next several years. The company paid a dividend of $2.00 last week. If the required rate of return is 16 percent, what is the market value of this stock?
| A $56.12 |
| B $36.86 |
| C $46.37 |
| D $51.03 |
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Authors: Bola Sokunbi
1st Edition
1119696739, 978-1119696735
