Question
If your stock paying annual dividends will pay a dividend D at t=1 of $1 and have a growth rate of 10 8% between
If your stock paying annual dividends will pay a dividend D at t=1 of $1 and have a growth rate of 10 8% between t-1 and t=2, and with a constant growth rate of 4.2 % thereafter into the future, what should be the value of the stock at t=0 if the expected rate of return for the stock is 8.1% (to two decimal places)?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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