Impossible Corp. just paid a dividend of $1.93 per share. The dividends are expected to grow at
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Impossible Corp. just paid a dividend of $1.93 per share. The dividends are expected to grow at 24 percent for the next eight years and then level off to a growth rate of 3.5 percent indefinitely. If the required return is 12 percent, what is the price of the stock today?
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Compute the dividend at the end of year 1 using the equation as shown below Dividend Just paid dividend1 Growth rate Time 1931 024 1 193124 23932 Henc...View the full answer
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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