Question
Company DIMOND just paid annual dividend of $5 today. The dividend is expected to grow at 3% for the next 5 years, then it will
Company DIMOND just paid annual dividend of $5 today. The dividend is expected to grow at 3% for the next 5 years, then it will grow at 5% in perpetuity. If stocks of similar company earn 9% annual return, what is the price of a share of Company DIMOND stock?
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Quantitative Analysis for Management
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha
12th edition
133507335, 978-0133507331
