# Question: Consider the two period model Assume the same information as Problem

Consider the two-period model. Assume the same information as Problem 2, except that after 10 years, growth would change to 5%. What is the implied price?

In Problem 2

Assume the next period's dividend is $1, that stockholders require a 12% return, that new investment is expected to yield 14%, and that the retention rate is 50%.

In Problem 2

Assume the next period's dividend is $1, that stockholders require a 12% return, that new investment is expected to yield 14%, and that the retention rate is 50%.

**View Solution:**## Answer to relevant Questions

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