Dally Rex a clothing stores predict a high growth rate of 45 per cent for the next

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Dally Rex a clothing stores predict a high growth rate of 45 per cent for the next 2 years, followed by growth rates of 25 per cent and 20 per cent for the following 2 years respectively. It clothing store expects to stabilise its growth to a constant rate of 7.5 per cent for the next several years. The company paid a dividend of $4.90 recently.

If the required rate of return is 12 per cent, what is the current market price of the share?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jul 13, 2023 03:09 AM

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Dally Rex a clothing stores predict a high growth rate of 45 per cent for the next

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To calculate the current market price of the share we can use the dividend discount model DDM or the ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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