Question
The earnings of LSU tech are expected to be $1 in one year and are expected to grow at a 23% rate for the following
The earnings of LSU tech are expected to be $1 in one year and are expected to grow at a 23% rate for the following 2 years (until year 3). After, earnings will stabilize to a 5% growth in perpetuity. If the interest rate is 7%, calculate the value today of all of LSU's earnings.
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Financial Management For Public, Health, And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
6th Edition
150639681X, 978-1506396811
