Problem 9-16 Nonconstant growth Carnes Cosmetics Co.'s stock price is $48.27, and it recently paid a $3.00 dividend. This dividend is expected to grow by
Problem 9-16 Nonconstant growth
Carnes Cosmetics Co.'s stock price is $48.27, and it recently paid a $3.00 dividend. This dividend is expected to grow by 20% for the next 3 years, then grow forever at a constant rate, g; and rs = 16%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.
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Authors: George H. Pink, Paula H. Song
8th Edition
1640551093, 978-1640551091
