Question
Growing Real Fast is expected to have a 20 percent growth rate for the next four years (D1 to D4). Beginning in year 5, the
Growing Real Fast is expected to have a 20 percent growth rate for the next four years (D1 to D4). Beginning in year 5, the growth rate is expected to be 10% per year and last forever. If it just paid $2 dividend (D0) and the discount rate is 15%, what is the value of a share of stock?
A. $61.07
B. $40.80
C. $59.80
D. $63.50
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Shrimply Inflation
Authors: Eiche Gardner
1st Edition
B0BYLXHYCY, 979-8386901233
