Question
Calculate the ABC share price from the following data 4. Company ABC plans to grow at a rate of 30% per year for the next
Calculate the ABC share price from the following data
4. Company ABC plans to grow at a rate of 30% per year for the next 5 years; Y then, due to competition, it forecasts moderate growth (7% per year on a regular basis). indefinite). The market risk premium is 6%, the risk-free rate 5%, the beta 1.2 and the company just paid a dividend of $2.50.
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Calculations The dividend at the end of year 1 D1 can be calculated as follows D1 250 1 30 325 The d...Get Instant Access to Expert-Tailored Solutions
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
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