Austral shipbuilding company has been growing at a phenomenal rate of 33 per cent per year because
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Austral shipbuilding company has been growing at a phenomenal rate of 33 per cent per year because of its rapid expansion and explosive sales in the global market. However, you believe this growth rate will last for 3 more years and will then drop to 10 per cent per year. If the growth rate then remains at 10 per cent indefinitely, what is the value of the stock? The dividend just paid was $8, and the required return is 21 per cent.
Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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