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Bull Dog Pretzels will pay an annual dividend of $0.95 one year from now. Analysts expect this dividend to grow at 6% per year for
Bull Dog Pretzels will pay an annual dividend of $0.95 one year from now. Analysts expect this dividend to grow at 6% per year for three years. Thereafter, growth will slow down to 2% per year and remain there for the foreseeable future. b. According to the dividend discount model, what is the value of a share of Bull Dog Pretzels stock today if the firms cost of equity capital is 9.0%? Why is the answer 15.02? Please explain how can I do this on a finical calculator using CFj.
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