Question
This company will pay a dividend of $2, $2.5, $3, and $4 in year 4, 5, 6, and 7, respectively. After that, dividend will grow
This company will pay a dividend of $2, $2.5, $3, and $4 in year 4, 5, 6, and 7, respectively. After that, dividend will grow at the constant rate of 5% forever. If the required rate of return is 7%, what is the estimated stock price today?
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
