Question
calculate the estimated value of a stock expected to growth 15% for the next 3 years and 5% thereafter. Using a multi-stage dividend discount model,
calculate the estimated value of a stock expected to growth 15% for the next 3 years and 5% thereafter. Using a multi-stage dividend discount model, what is your estimate of this stocks value if the most recent dividend was $2 per share and its appropriate required return on equity of 10%?
| Year | Dividend | Present Value |
| 0 | $2.00 |
|
| 1 |
|
|
| 2 |
|
|
| 3 |
|
|
Stock Price Expected in Year 3?
PV of Stock Price Expected in Year 3?
Todays Expected Stock Price?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
