Question
You are valuing a firm that does not plan to pay dividends for the next 10 years. Starting year 11, the company will pay a
You are valuing a firm that does not plan to pay dividends for the next 10 years. Starting year 11, the company will pay a constant dividend of $1 per share. The discount rate for the stock of the firm is 12%. What is the fair value of the firm?
|
| $12.98 |
|
| $5.71 |
|
| $8.33 |
|
| $2.68 |
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
