Question
Suppose the Bastille Corp. has just paid a dividend of $3.00 per share. Dividends for Bastille are expected to grow at a rate of 10%
Suppose the Bastille Corp. has just paid a dividend of $3.00 per share. Dividends for Bastille are expected to grow at a rate of 10% for 2 years and then 2% per year indefinitely. If the required return is 15%, what is the value of a share of Bastille stock today?
| a. | $24.40 |
| b. | $27.15 |
| c. | $36.78 |
| d. | $53.44 |
| e. | $70.87 |
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen
2nd Edition
0538473452, 9780538473453
