Shrewd Corp. just paid a $ 1 . 2 5 per share dividend. Dividends will grow at

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Question:

Shrewd Corp. just paid a $

1.25

per share dividend. Dividends will grow at a rate of

28 %

for the next

8

years and then grow at a rate of

6 %

in perpetuity. What is the current share price if the required return is

13 % ?

Related Book For answer-question

Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 22, 2024 06:10 AM

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Shrewd Corp. just paid a $ 1 . 2 5 per share dividend. Dividends will grow at

Question:

Expert Answer:

To calculate the current share price of Shrewd Corp we can use the dividend discount model DDM approach The DDM values the stock based on the present ... View the full answer

Corporate Finance

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