Question
Given the information in the table, what is the price of the stock in YEAR 1? Todays Dividend $4.14 Discount Rate 6.79% Growth rate in
Given the information in the table, what is the price of the stock in YEAR 1?
| Todays Dividend | $4.14 |
| Discount Rate | 6.79% |
| Growth rate in dividends 0 to 1 | 7.58% |
| Growth rate in dividends 1 to 2 | 9.46% |
| Growth rate in dividends 2 to 3 | 5.91% |
| Growth rate in dividends 3 onward | 3.88% |
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Principles Of Managerial Finance
Authors: Chad J. Zutter, Scott Smart
16th Edition
0136945880, 978-0136945888
