Question
Given the information below, please estimate the constant growth rate after year 5. Required rate of return on equity: 10% (constant) P 0 = $28
Given the information below, please estimate the constant growth rate after year 5.
Required rate of return on equity: 10% (constant)
P0 = $28
D0=$2
g1=10%
g2=15%
g3=20%
g4=25%
g5=20%
Growth rate after year 5 is expected to be constant forever.
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