Rabbit Town Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year
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Rabbit Town Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 6 percent per year indefinitely. The required return on this stock is 10 percent, and the stock currently sells for $76 per share. What is the projected dividend for the coming year? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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