Question
Company has the following dividend stream. D1 = 1.37 D2 = 3.35 D3 = 4.42 D4 = 5.76 Dividend is expected to be constant after
Company has the following dividend stream.
D1 = 1.37
D2 = 3.35
D3 = 4.42
D4 = 5.76
Dividend is expected to be constant after year 4, with a growth rate of 4%. The cost of equity is 10%. What is the stock price, P0 , today?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
18th Edition
126409762X, 9781264097623
