Question
company x paid a dividend of 120 cents.The dividends are expected to grow by 40% per annum during the 3-year supernormal growth period when the
company x paid a dividend of 120 cents.The dividends are expected to grow by 40% per annum during the 3-year supernormal growth period when the cost of equity is 30%, then grow at 20% per annum thereafter when the cost of equity is 25%.
Calculate the value of the shares of company x
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
