Question
Your company has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate
Your company has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 10.60% for the next 5 years, after which growth should match the 5.20% industry average growth rate, which is a more sustainable rate. The last dividend paid (Do) was $1.00 and your firm's WACC is 11.82%. What is the value per share of your firm's stock? Note: submit your spreadsheet for partial credit considerations. Your Answer:
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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