Celgene Corporation(CELG) have paid a dividend of $1.90 per share for the most recent year. Shares of

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Celgene Corporation(CELG) have paid a dividend of $1.90 per share for the most recent year. Shares of CELG have an estimated beta of 1.75 and currently selling for $83.25. The risk-free rate is 3% and the equity risk premium is estimated at 7.25%.

Calculate the constant dividend growth rate that would be required to justify the current market price.

Related Book For answer-question

Calculus

ISBN: 9781285057095

10th Edition

Authors: Ron Larson, Bruce H. Edwards

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Posted Date: May 13, 2024 01:23 PM

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Celgene Corporation(CELG) have paid a dividend of $1.90 per share for the most recent year. Shares of

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To calculate the constant dividend growth rate g required to justify the current market price of Ce... View the full answer

Calculus

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