Question: A company s stock currently pays a dividend of 1 25 per

A company's stock currently pays a dividend of $1.25 per share. The company is expected to grow dividends 25% next year, 20% the following year, and 15% the year after that before dividend growth settles down to a long-term average rate of 5% per year. Estimate the intrinsic value per share if the required return on the stock is 11%.

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  • CreatedAugust 07, 2015
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