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Company TYK forecasts that it will begin paying dividends seven years from now, at which point dividends are $1 per share. Thereafter, dividends are expected
Company TYK forecasts that it will begin paying dividends seven years from now, at which point dividends are $1 per share. Thereafter, dividends are expected to growth at a constant rate of 6% per year. The discount rate for TYK is 10%. How much would you pay for one share in Company TYK? (The answer is not 14.11 or 13.60)
Company TYK forecasts that it will begin paying
dividends seven years from now, at which point
dividends are $1 per share. Thereafter, dividends
are expected to
growth at a constant rate of 6% per year. The
discount rate for TYK is 10%. How much would
you pay for one share in Company TYK? (The
answer is not 14.11 or 13.60)
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