A company's share just paid a dividend of $4.00. You expect the dividends to grow by 20%

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A company's share just paid a dividend of $4.00. You expect the dividends to grow by 20% for the next 3 years and then settle down to a constant 2.0% growth.

If the required return on the share is 11.0%, what is your estimate of the fair value (price) of the share?

Related Book For answer-question

Financial management theory and practice

ISBN: 978-1439078099

13th edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Posted Date: Dec 19, 2023 03:10 AM

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A company's share just paid a dividend of $4.00. You expect the dividends to grow by 20%

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Given the information youve provided heres how to estimate the fair value of the share 1 Calculate t... View the full answer

Financial management theory and practice

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