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Problem 8-19 Supernormal Growth [LO1] Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three
Problem 8-19 Supernormal Growth [LO1]
Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 7 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $88 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Projected dividend | $ |
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