Question
Whitewater Adventures has just paid a dividend of $4.00. An analyst forecasts annual dividend growth of 9% for the next five years at t=1,
Whitewater Adventures has just paid a dividend of $4.00. An analyst forecasts annual dividend growth of 9% for the next five years at t=1, 2,..., 5, after which dividends will decrease by 1% per year indefinitely (at t=6, 7, ..., ). The required return is 8% (EAR). What is the current value per share according to the analyst?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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0135811600, 978-0135811603
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