Question
Suppose that you estimate D1=$0.72, D2=$0.76, D3=$0.84, and D4=$0.88 for a stock. You also estimate that, beginning at year 4, dividends will grow continually at
Suppose that you estimate D1=$0.72, D2=$0.76, D3=$0.84, and D4=$0.88 for a stock. You also estimate that, beginning at year 4, dividends will grow continually at a rate of 2% per year. If the required return to hold the stock is 14.6%, what is the stocks current price?
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30 Days To Taming Your Finances What To Do To Better Manage Your Money
Authors: Deborah Smith Pegues
1st Edition
0736918361, 978-0736918367
