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You are considering investing in the company Husky Inc. The company just paid $ 2 dividends over the course of last year. The company is
You are considering investing in the company Husky Inc. The company just paid $ dividends over the course of last year. The company is going through a global expansion currently. You estimate that the company will pay annual dividends of $ $ $ $ and $ for the next years.
After that, the company will continue to pay annual dividends growing at a longterm, sustainable growth rate. You conducted extensive fundamental research into Husky Inc. and made the following predictions about the company's business years from now. You believe the company will have a net profit margin of and an asset turnover of In years, Husky Inc. will be relatively mature and therefore the management of the company is comfortable with operating the company with a substantial amount of debt. You believe the company's debt will be three times its equity. Also, since the company is relatively mature, the management will pay of its net income as dividends, as opposed to a dividend payout ratio of currently.
You believe the appropriate discount rate for Husky Inc. should be What is the fundamental price for Husky Inc.? Enter a number with decimals, ie if the answer is $ enter
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