Question
XYZ has been growing at a rate of 30% per year in recent years. This same supernormal growth is expected to last for another two
XYZ has been growing at a rate of 30% per year in recent years. This same supernormal growth is expected to last for another two years (30% for Year 0 to Year 1 and Year 1 to Year 2), then at a constant rate of 10% thereafter.
a. If D0 = RM1.80, rs = 12%, then what is XYZs stock worth today? What is the expected dividend yield and its capital gains yield at this time?
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Computational Finance And Its Applications
Authors: C. A. Brebbia, M. Costantino
1st Edition
1853127094, 978-1853127090
