Question
Lets assume that Company As dividends grew 18.4% each year for four years beginning in 2009, after which the growth rate declined by 2.8% a
Lets assume that Company As dividends grew 18.4% each year for four years beginning in 2009, after which the growth rate declined by 2.8% a year for an additional three years before stabilizing at 7.2% in 2017.
The expected rate of return is assumed to 10% and the current dividend in 2009 is $2.28
What is Company As intrinsic value?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
