Question: Duffs Co . is growing quickly. Dividends are expected to grow at a 2 4 percent rate for the next three years, with the growth
Duffs Co is growing quickly. Dividends are expected to grow at a percent rate for the next three years, with the growth rate falling off to a constant percent thereafter. If the required return is percent and the company just paid a $ dividend, what is the current share price? Required return Most recent dividend $ Supernatural growth rate Constant growth rate after year Dividend year Dividend year Dividend year Stock Price year PV of CF year PV of CF year PV of CF year Price of the stock today
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