Question
Company Z-primes earnings and dividends per share are expected to grow by 4% 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 4% 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 $8, the market capitalization rate is 14% and next years EPS is $15. What is Z-primes stock price?
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Illustrating Finance Policy With Mathematica
Authors: Nicholas L. Georgakopoulos
1st Edition
3319953710, 978-3319953717
