Question: how do we solve it? Constant Growth Model: Example Do(1+g) Vo = k-g E1 = $5.00 b = 40% k= 15% (1-b) = 60% D1

how do we solve it?
how do we solve it? Constant Growth Model: Example Do(1+g) Vo =

Constant Growth Model: Example Do(1+g) Vo = k-g E1 = $5.00 b = 40% k= 15% (1-b) = 60% D1 = $3.00 g = 8% Vo = 3.00/(.15 - .08) = $42.86 = 9

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