Barrington Inc. has never paid dividends before. Today, it made a public announcement that it will pay
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Barrington Inc. has never paid dividends before. Today, it made a public announcement that it will pay an annual dividend of $2.00 two year from now. It also stated that dividends would increase by 30% per year for each of the following two years and then increase by 3% annually thereafter. Its stock has a beta of 1.40. The risk-free rate is 3% and market risk premium is 5%. What will be Barrington's annual dividend 5 years from now?
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International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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