Question: Ale Corp. is expected to increase dividends by 20% this year and by 15% next year. After that, dividend growth is expected to level off
Ale Corp. is expected to increase dividends by 20% this year and by 15% next year. After that, dividend growth is expected to level off at 5% per year. If the last dividend was $1 and the required return for stocks with this level of risk is 18%, what should be the price of the stock today?
I keep getting 10.04 and the given answer is 10.01
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