Question
Suppose stock A has dividend of $8 at t = 1 (e.g., D 1 = $8). Dividend grows at g 1 = 15% for two
Suppose stock A has dividend of $8 at t = 1 (e.g., D1 = $8). Dividend grows at g1 = 15% for two years and g2 = 5% forever thereafter. What is the current price at t = 0 if the discount rate, k, is 12%?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
13th Global Edition
1292409487, 978-1292409481
