A company's recent dividend is $1 per share. The company expects dividends to grow 10% over the
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A company's recent dividend is $1 per share. The company expects dividends to grow 10% over the next three years. After that, dividends will increase by 5% forever. Its stock beta is 1.0. Currently, the expected market return is 12% and the risk-free rate is 7%. What is the present value of the common shares?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0133400694
1st canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
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