Question
Woidtke Manufacturing's stock has supernormal growth of 50% for Year 0 to Year 1, 40% for Year 1 to Year 2, 30% for Year 2
Woidtke Manufacturing's stock has supernormal growth of 50% for Year 0 to Year 1, 40% for Year 1 to Year 2, 30% for Year 2 to Year 3, 25% for Year 3 to Year 4, and then long-run constant g = 6%.
a.What is the value of this stock, if rs=12% and D0is $2?
b.What are dividend yield and capital gains yield at t=0?
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
