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Please help with the following problem with clear explanations! We have the following information for Clough, Garcia and associates. The stock pays a $1 dividend
Please help with the following problem with clear explanations!
We have the following information for Clough, Garcia and associates. The stock pays a $1 dividend and it will grow by 200% the first year 100% the second year and 2% forever after that. The unlevered beta is 1, D/E is 60/40 and the tax rate is .4. Additionally, we know the treasury bond rate is .03 and the ROR of the S&P has been 10%. Derive the stock price of (C&G).
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