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 $6, the cost of equity is 16%, and next years EPS is $13. What is Z-primes stock price?
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Handbook Of Research In Education Finance And Policy
Authors: Helen F. Ladd, Margaret E. Goertz
2nd Edition
0415838010, 978-0415838016
