Question
You expect a share of stock to pay dividends of $2 in one year. After that dividends are expected to grow at 10% for two
You expect a share of stock to pay dividends of $2 in one year. After that dividends are expected to grow at 10% for two years and after that you believe that the company will increase dividends at a constant rate of 6%. How much is your estimate for the stock price if the required rate of return is 12%?
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
