Question
Carnes Cosmetics Co.'s stock price is $36, and it recently paid a $2.00 dividend. This dividend is expected to grow by 15% for the next
Carnes Cosmetics Co.'s stock price is $36, and it recently paid a $2.00 dividend. This dividend is expected to grow by 15% for the next 3 years, then grow forever at a constant rate, g; and rs = 14%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
