Question
You have forecast that United Sports, Inc. will pay a dividend of $0 next year (in time 1), $.40 two years from now (in time
You have forecast that United Sports, Inc. will pay a dividend of $0 next year (in time 1), $.40 two years from now (in time 2), $.80 three years from now (in time 3) and $1.30 four years from now (in time 4). For dividends beyond four years, you assume they will increase at 6% per year from the prior year. If the discount rate is 11%, calculate a fair price for the stock of United Sports, Inc.
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Management Science The Art Of Modeling With Spreadsheets
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