Question
Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the next four years (affecting D1, D2, D3, and D4).Beginning
Growing Real Fast Company (GRF) is expected to have a 25 percent growth rate for the next four years (affecting D1, D2, D3, and D4).Beginning in year five, the growth rate is expected to drop to 1.4 percent per year and last indefinitely.If GRF just paid a $2.00 dividend and the appropriate discount rate is 12.9 percent, then what is the value of a share of GRF to two decimal places?
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
