Question
Suppose we have a firm that is assumed to have a dividend growth rate of 20% for the next three years, then 5% per year
Suppose we have a firm that is assumed to have a dividend growth rate of 20% for the next three years, then 5% per year afterward. The cost of equity is assumed to be 15%. Assume that the stock recently paid a dividend of $9. The Compute the value of the stock.
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
