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Please provide explanation for your answers, thanks A stock's price is estimated using Constant-growth Dividend Discount Model (formula below). Po = D1 ke g where
Please provide explanation for your answers, thanks
A stock's price is estimated using Constant-growth Dividend Discount Model (formula below). Po = D1 ke g where PO is the current price, D1 is the divided at time period 1, ke is the cost of equity and g is the growth rate. After a negative announcement, the growth rate g estimate decreased (new growth rate g'Step by Step Solution
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