Question
You want to value Maxima Machinery stock. You expect the firm to have a growth rate of 12% for the next two years, 9% for
You want to value Maxima Machinery stock. You expect the firm to have a growth rate of 12% for the next two years, 9% for the succeeding two years, after which the firm's growth will be a constant 4.5% a year. Maxima has just paid a dividend of $2.00. If the discount rate is 10%, what is the price of the stock?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
