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Company BMI will experience a supernormal growth rate of 20% in the next two years. The growth rate will then level off to 4% from
Company BMI will experience a supernormal growth rate of 20% in the next two years. The growth rate will then level off to 4% from year 3 and beyond. The most recent dividend payment was $2.00 and the required rate of return for BMI stock is 10% What is the intrinsic. value of the RMI stock? For us we are lobking for the present value of all future cash flows. 4%D4=D2(1+g)2 P2=RgD3=RgD2(1+g)
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