Question
CF Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 12 years. Beginning in year 13, the firm will begin
CF Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 12 years. Beginning in year 13, the firm will begin to pay a $25 per share dividend indefinitely. Given CFB is fairly risky the required return is 18%, what should the stock sell for today?
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
