Woo Financial Services Declared dividends of $1 today. Dividends are expected to remain the constant for 3yrs.
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Woo Financial Services Declared dividends of $1 today. Dividends are expected to remain the constant for 3yrs. After year 3 dividends are expected to grow 5% for 2yrs, 15% for 3yrs after which settle to 12% forever. The risk free rate is 6% and the market risk premium is 7%. Beta risk is 50% higher than that of the market. How much would you pay for a share of Woo financial services today? Show all work
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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