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You wish to value the stocks of Hormel Food, which is currently paying a dividend of $0.39. This dividend is expected to grow at a
You wish to value the stocks of Hormel Food, which is currently paying a dividend of $0.39. This dividend is expected to grow at a rate of 11.3% annually for the next five years, and afterwards the dividend growth rate will decline linearly from 11.3% to 5.7% over the next ten years. If your required rate of return is 8.72%, what will be value of stock per share today? Use three stage H model
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