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StartUp Corporation has just paid a dividend of $1.15 per share. The firm pays annual dividends. It is expected by analysts that the earnings of
StartUp Corporation has just paid a dividend of $1.15 per share. The firm pays annual dividends. It is expected by analysts that the earnings of StartUp will grow by 8.2% per year over next six years. After that, the earnings will most likely grow at the current industry average of 5.5% per year. Analysts do not expect any changes in the payout ratio of the firm. The cost of capital is 10.0%.
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To calculate the share price of StartUp Corporation we can use the Dividend Discount Model DDM DDM i...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
