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The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be at 30% for 2 years, after which dividends are expected
- The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be at 30% for 2 years, after which dividends are expected to grow at a rate of 7.1% forever. Its required return (rS) is 14%.
- What are your estimates of the companys dividends for years 1 through 3?
- What is your best estimate for the companys stock price (Horizon value) in year 2? Show your calculations.
- What is your best estimate for the intrinsic value of the stock today? Show your work.
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Finance And Sustainable Development
Authors: Magdalena Ziolo
1st Edition
0367819767, 978-0367819767
