Question: Hi I am having difficulty with this question due to the term, 'forever let me know if you can help here is the question Sheffield
Hi I am having difficulty with this question due to the term, 'forever" let me know if you can help here is the question
Sheffield Inc. has a patent that will expire in two years. The firm is expected to grow at 10.4 percent for the next two years and dividends will be paid at year end. It just paid a dividend of $1. After two years, the growth rate will decline to 3.7 percent immediately, and the firm will grow at this rate forever. If the required rate of return is 11 percent, value the firm's current share price.
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