Question
Far Side Corporation is expected to pay the following dividends over the next four years: $14, $2, $6, and $6. Afterward, the company pledges
Far Side Corporation is expected to pay the following dividends over the next four years: $14, $2, $6, and $6. Afterward, the company pledges to maintain a constant 0.06 growth rate in dividends forever. If the required return on the stock is 0.12, what is the current share price? Answer with 2 decimals (e.g. 45.45).
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Corporate Finance Core Principles And Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
6th Edition
1260571122, 978-1260571127
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