Question
The dividend for Should I, Inc., is currently $1.65 per share. It is expected to grow at 12 percent next year and then decline linearly
The dividend for Should I, Inc., is currently $1.65 per share. It is expected to grow at 12 percent next year and then decline linearly to a 3 percent perpetual rate beginning in four years. If you require a 15 percent return on the stock, what is the most you would pay per share?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
16th Edition
013749601X, 978-0137496013
