Question
Cardinal Corporation just paid $1 in dividends. They will grow at 8% for 3 years before settling to a 5% rate. The required return is
Cardinal Corporation just paid $1 in dividends. They will grow at 8% for 3 years before settling to a 5% rate. The required return is 14%. What price should they sell for at the end of year 3?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
