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Joshua, the financial analyst of an investment company, has found that Company YH will have a growth rate of 30 percent for five years. After
Joshua, the financial analyst of an investment company, has found that Company YH will have a growth rate of 30 percent for five years. After that, the company will grow at 25 percent for another five years. Then the company will have a growth rate for 20 percent for ten years. Then the company will have a constant growth rate of 10%. The required rate of return of investors for this company is 15%. If Company YH just paid a dividend of $0.40, what should be the stock price of the company?
$59.69 | ||
$44.5 | ||
$33.5 | ||
$25.5 |
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