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The stock of a firm that yesterday paid a dividend of $4.10. Next years dividend is expected to be $4.76 followed by $5.00 the following
The stock of a firm that yesterday paid a dividend of $4.10. Next years dividend is expected to be $4.76 followed by $5.00 the following year and $5.50 the year after that. Dividends will then grow at a rate of 8% for the following 12 years before falling to a growth rate of 2.5% annually forever. With a 5% cost of equity. Price the stock...
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