Question
Company Z-primes earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4. In year 5
Company Z-primes earnings and dividends per share are expected to grow by 2% a year. Its growth will stop after year 4. In year 5 and afterward, it will pay out all earnings as dividends. Assume next years dividend is $6, the cost of equity is 12%, and next years EPS is $11. What is Z-primes stock price?
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Aircraft Finance Strategies For Managing Capital Costs In A Turbulent Industry
Authors: Bijan Vasigh, Reza Taleghani, Darryl Jenkins
1st Edition
1604270713, 9781604270716
