Question
Far Up Corporation is expected to pay the following dividends over the next four years: $12, $10, $6, and $2. Afterward, the company pledges to
Far Up Corporation is expected to pay the following dividends over the next four years: $12, $10, $6, and $2. Afterward, the company pledges to maintain a constant 7 percent growth rate in dividends forever.
Required:If the required return on the stock is 15 percent, what is the current share price?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
