Question
The growth in per share FCFE of FOX, Inc. is expected to be 8%/year for the next three years, followed by a growth rate
The growth in per share FCFE of FOX, Inc. is expected to be 8%/year for the next three years, followed by a growth rate of 5%/year for two years; after this five year period, the growth in per share FCFE is expected to be 2%/year, indefinitely. The required rate of return on FOX, Inc. is 12%. Last year's per share FCFE was $1.8. What should the stock sell for today?
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