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Suppose we have a firm that is assumed to have a dividend growth rate of 24% for the next two years, then 5% per year
Suppose we have a firm that is assumed to have a dividend growth rate of 24% for the next two years, then 5% per year afterward. The cost of equity is assumed to be 19%. Assume that the stock recently paid a dividend of $8.
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To compute the value of the stock we can use the Gordon Growth Model also known as the divid...
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
