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Primula Corporation ( PRM ) just paid a dividend of $ 3 . 2 5 . Analysts expect that dividend to grow over the next
Primula Corporation PRM just paid a dividend of $ Analysts expect that dividend to grow over the next years at per year. PRMs cost of equity is After years, PRM intends to set a fixed ie unchanging dividend at $ and expects the internal growth rate to decline to as a result. What is the value of the stock today? Please draw a clearly marked number line. Do you have any reservations about using the Dividend Discount Model DDM for pricing a stock? If so why?
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