Question
I have a practice problem for a test that I can't figure out. Southern Foods just paid an annual dividend of $3.10 a share. Management
I have a practice problem for a test that I can't figure out.
Southern Foods just paid an annual dividend of $3.10 a share. Management estimates the dividend will increase by 4 percent for one year then 8 percent for two years then 2% forever. The required rate of return is 12 percent. What is the value of this stock today?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
2nd Edition
0324289235, 9780324289237
