Question
Nachman Industries just paid a dividend of D0= $1.42.Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and
Nachman Industries just paid a dividend of D0= $1.42.Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 4% in Year 3 and thereafter.The required return on this stock is 8.00%.What is the best estimate of the stock's current market value?
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Modern Portfolio Theory and Investment Analysis
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
9th edition
9781118805800, 1118469941, 1118805801, 978-1118469941
