Question: Estimating Company Value Using DDM with Increasing Perpetuity Assume that a companys dividends per share are projected to grow at 2% each year, its next
Estimating Company Value Using DDM with Increasing Perpetuity Assume that a company’s dividends per share are projected to grow at 2% each year, its next year’s dividends per share is $1.20, and its cost of equity capital is 5%. Estimate the company’s per share stock price.
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