Question
Morgans Companys last dividend (D0) was $1.60. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are
Morgans Companys last dividend (D0) was $1.60. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are expected to grow at a rate of 6% forever. If the companys required return is 12%, what is your esimtate of its current stock price? PLEASE round your answer 2 decimal places. Your answer should be between 18.40 nd 78.16
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Financial Economics
Authors: Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
1st Edition
0470596201, 9780470596203
