Diaz Corp. is expected to grow rapidly at a rate of 35 percent for the next seven
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Diaz Corp. is expected to grow rapidly at a rate of 35 percent for the next seven years. The company’s first dividend, to be paid three years from now, will be $5. Aft er seven years, the company (and the dividends it pays) will grow at a rate of 8.5 percent. What is the value of Diaz stock with a required rate of return of 14 percent?
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81735 D3 500 g 85 R 14 D D 0 D3 5 P P D4 5 x 135 675 D5 675 ...View the full answer
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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