Question
Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 25% this year, by 12% in Year
Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 25% this year, by 12% in Year 2, and at a constant rate of 4% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stocks current market value?
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Finance Capital Markets Financial Management And Investment Management
Authors: Frank J. Fabozzi, Pamela Peterson Drake
1st Edition
0470407352, 978-0470407356
