Your company paid a dividend of $2 last year. The growth rate is expected to be 20 percent for 1 year, 17 percent the next year, then the growth rate is expected to be a constant 10 percent thereafter. The required rate of return is 14 percent. What is the current market value of this share ?
Your company paid a dividend of $2 last year. The growth rate is expected to be 20 percent for 1 year, 17 percent the next year, then the growth rate is expected to be a constant 10 percent thereafter. The required rate of return is 14 percent. What is the current market value of this share ?
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 16P
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Your company paid a dividend of $2 last year. The growth rate is expected to be 20 percent for 1 year, 17 percent the next year, then the growth rate is expected to be a constant 10 percent thereafter. The required
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