Boni Software Products is currently paying a dividend of $1.20. This dividend is expected to grow at
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Boni Software Products is currently paying a dividend of $1.20. This dividend is expected to grow at the rate of 30 percent a year for the next five years, followed by a growth rate of 20 percent a year for the following five years. After 10 years the dividend is expected to grow at the rate of 6 percent a year. The required rate of return for this stock is 21 percent. What is its intrinsic value?
DividendA dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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