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Use excel to answer the question, please. 9. GP Farms just paid a dividend of $3.20 on its stock. The growth rate in dividends is
Use excel to answer the question, please.
9. GP Farms just paid a dividend of $3.20 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 percent for the next three years, and a return of 11 percent thereafter. What is the current share price? (HINT: There are three components to the price: two growing annuities and a growing perpetuity)Step by Step Solution
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