Question: a) Define and explain this model as well as its usage b) Given the following data: Dividend payment of 1.03$; 21% growth for the next
a) Define and explain this model as well as its usage
b) Given the following data:
Dividend payment of 1.03$;
21% growth for the next 2 years (g1);
Growth then decreases for the following 6 years until it stabilizes at 5.0%;
Required rate of return is 9.0%;
The stock price is 52$
Assuming 3 levels of growth, use the H model to evaluate this stock.
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