Question: ADDITIONAL PROBLEMS INDEFINITE PERIODS, INCONSISTENT GROWTH $ . 5 0 dividend at the beginning of year 5 This dividend grows at 5 % during years

ADDITIONAL PROBLEMS
INDEFINITE PERIODS, INCONSISTENT GROWTH
$.50 dividend at the beginning of year 5
This dividend grows at 5% during years 5 and 6
After that it grows at 2% forever
8% discount rate calculate what youre willing to pay today for the share
ANSWER TO ADDITIONAL PROBLEM
ADDITIONAL PROBLEMS INDEFINITE PERIODS,

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