A company currently has a share price of $41 and paid a dividend of $1.6 for the

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A company currently has a share price of $41 and paid a dividend of $1.6 for the most recent year. The required equity return is 10%. Assume that the dividend growth rate will be 3% throughout the first stage of 3 years, and the dividend growth rate thereafter will be 2%.

What is the terminal value (i.e., the present value of dividends as of end of year 3)?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Apr 13, 2023 01:16 AM

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A company currently has a share price of $41 and paid a dividend of $1.6 for the

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To calculate the terminal value we need to find the present value of al... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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