Question
Suppose that a company expects to pay a 2.50 dividend in the first 2 years and then expects it to grow at 12% through the
Suppose that a company expects to pay a 2.50 dividend in the first 2 years and then expects it to grow at 12% through the end of year 4. After year 4 dividend payment grows at the constant rate of 6% and stabilizes at 6%. What is the value of this stock?
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
