Question
Imagine a stock that offers no dividend for the next three years. In Year 4, it is expected to offer $5. In Year 5,
Imagine a stock that offers no dividend for the next three years. In Year 4, it is expected to offer $5. In Year 5, the expected dividend growth is 12%. Starting from Year 6, the dividends are expected to 5%. If the cost of equity is 10%, what is the current stock price? $72.04 $77.05 $79.91 $73.69 $75.25
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