Quansi, Inc., management expects to pay no dividends for the next six years. It has projected a

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Quansi, Inc., management expects to pay no dividends for the next six years. It has projected a growth rate of 25 percent for the next seven years. Aft er seven years, the firm will grow at a constant rate of 5 percent. Its first dividend, to be paid in year 7, will be $3.25. If the required rate of return is 24 percent, what is the stock worth today?


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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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