Industrial Light and Magic, Inc., is a young start-up company. dividends will be paid on the...
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Industrial Light and Magic, Inc., is a young start-up company. dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $4 per share dividend in 8 years and will increase the dividend by 1.45 percent per year thereafter. If the required return on this stock is 16.75 percent, what is the current share price? (Do not round your intermediate calculations.) Industrial Light and Magic, Inc., is a young start-up company. dividends will be paid on the stock over the next 7 years because the firm needs to plow back its earnings to fuel growth. The company will pay a $4 per share dividend in 8 years and will increase the dividend by 1.45 percent per year thereafter. If the required return on this stock is 16.75 percent, what is the current share price? (Do not round your intermediate calculations.)
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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