Question
Snowshoe Hiking Inc. has just paid a dividend of $6.00 per share. Analysts forecast an annual dividend growth rate of 9% for the next
Snowshoe Hiking Inc. has just paid a dividend of $6.00 per share. Analysts forecast an annual dividend growth rate of 9% for the next nine years (at t-1,...,9; Div-Divox1.09,...). After that, dividends will grow at a constant rate g forever (i... Divo-Div9x(1+g)....). If today's stock price is $211.50, what is the constant annual dividend growth rate g? The required rate of return is 9%.
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
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