A stock is expected to pay dividends of $1.00, $0.75 and $2.00 for the next 3 years,
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Question:
A stock is expected to pay dividends of $1.00, $0.75 and $2.00 for the next 3 years, respectively. After that dividends are expected to grow at a constant rate of 6% indefinitely. The required return on the stock is 10%. Compute the present value of the non-constant dividends.
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
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