Bon Temps is expected to experience supernormal growth of 25% for the next 4 years, then to
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Question:
Bon Temps is expected to experience supernormal growth of 25% for the next 4 years, then to return to its long-run constant growth rate of 8%. What is the stock's value under these conditions? What are its expected dividend yield and its capital gains yield in Year 1? In Year 6?Assume that the required rate of return is 16%. The dividend paid yesterday was $2.00
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