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Problem 1 Company DIMOND just paid annual dividend of $5 today. The dividend is expected to grow at 3% for the next 5 years,
Problem 1 Company DIMOND just paid annual dividend of $5 today. The dividend is expected to grow at 3% for the next 5 years, then it will grow at 5% in perpetuity. If stocks of similar company earn 9% annual return, what is the price of a share of Company DIMOND stock?
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th International Edition
1265533199, 978-1265533199
