Earlier today, company A has just paid dividend of $2 for eac h share of its stock.
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Earlier today, company A has just paid dividend of $2 for eac h share of its stock. The dividend each share is expected to grow at 11% for 6 years, then it will grow at 4.6% in perpetuity. The discount rate is always 12%. After one year’s time, just before the next dividend is paid, what will be one share of Company A’s stock worth?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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