Question
Company Miami just paid annual dividend of $25 today. The dividend is expected to grow at 8% for the next 3 years, then it will
Company Miami just paid annual dividend of $25 today. The dividend is expected to grow at 8% for the next 3 years, then it will grow at 3% in perpetuity. If stocks of similar company earn 12% annual return, what is the price of a share of Company Miami stock?
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
