Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that dividends will increase at
Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that dividends will increase at a rate of 5% per year indefinitely. If the last dividend was $1 and the required return is 20%, what is the price of the stock?
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Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
