Dylan Bearings is a young start-up company. No dividends will be paid on the shares over the
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Dylan Bearings is a young start-up company. No dividends will be paid on the shares over the next 9 years because the firm needs to plough back its earnings to fuel growth. The company will pay an £8 per share dividend in 10 years and will increase the dividend by 6 per cent per year thereafter. If the required return is 13 per cent, what is the current share price?
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Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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