Question
Carnes Cosmetics Co.'s stock price is $53, and it recently paid a $1.25 dividend. This dividend is expected to grow by 27% for the next
Carnes Cosmetics Co.'s stock price is $53, and it recently paid a $1.25 dividend. This dividend is expected to grow by 27% for the next 3 years, then grow forever at a constant rate, g; and rs = 13%. 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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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
