Question
MNIM Corp just paid a dividend of $40. Dividends are expected to grow 20% next year, and the growth rate in dividends is expected to
MNIM Corp just paid a dividend of $40. Dividends are expected to grow 20% next year, and the growth rate in dividends is expected to decline evenly over the next 8 years to a 5% steady-state growth rate. Assuming a 12% required rate of return, what is the intrinsic value of a share of MNIM?
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
978-0538453257
