Question
Price the Stock P 0 P 3 and P 8 for each of the three streams of dividend payouts, the discount rate is 12% Year
Price the Stock P0 P3 and P8 for each of the three streams of dividend payouts, the discount rate is 12%
| Year | Dividend S1 | Dividend S2 | Dividend S3 |
| 1 | $1 | $2 | $3 |
| 2 | $1 | $5 | $3 |
| 3 | $3 | $8 | $3 |
| 4 | $3 | $10 | 10% growth rate |
| 5 | $3 | $15 | 10% growth rate |
| 6 | $3 | 10% growth rate | 20% growth rate |
| 7 | $3 | 20% growth rate | |
| 8 | $3 |
| 5% growth afterwards |
| 9 | $3 (no growth) |
|
|
| P0 |
|
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|
| P3 |
|
|
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| P8 |
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
4th Edition
1567932800, 978-1567932805
