Question
The ABX News Co. paid the last dividend (D 0 ) of $2/share, and the dividend is expected to grow at a rate of 12%
The ABX News Co. paid the last dividend (D0) of $2/share, and the dividend is expected to grow at a rate of 12% over the next 4 years. It will then grow at a normal, constant rate of 3% for the future. The rate of return is 11%. What should the stock price be today?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
