Question
Doc Brown, Inc. just paid a dividend of D0 = $1.21. Analysts expect the company's dividend to grow by 28% this year, by 28% in
Doc Brown, Inc. just paid a dividend of D0 = $1.21. Analysts expect the company's dividend to grow by 28% this year, by 28% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9%. What is the best estimate of the stocks current market value?
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Financial Trading And Investing
Authors: John Teall
3rd Edition
0323909558, 978-0323909556
