Question
DB company currently pays a dividend of $2 per share, (Do=$2). It is estimated that the company's dividend will grow at a rate of 10
DB company currently pays a dividend of $2 per share, (Do=$2). It is estimated that the company's dividend will grow at a rate of 10 percent per year for the next 3 years, then the dividend will be expected to grow at some constant rate of G percent thereafter. If the current price of DB stock is $60 and DB stocks required rate of return is 12%. What is your forecast of G?
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Financial Management Principles And Practices
Authors: Timothy J. Gallagher
9th Edition
1954156103, 978-1954156104
