Question
Earlier today, company A has just paid dividend of $2 for eac h share of its stock. The dividend each share is expected to grow
Earlier today, company A has just paid dividend of $2 for eac h share of its stock. The dividend each share is expected to grow at 11% for 6 years, then it will grow at 4.6% in perpetuity. The discount rate is always 12%. After one year’s time, just before the next dividend is paid, what will be one share of Company A’s stock worth?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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