Koufu expects to pay a dividend of $1 per share next year, which will grow at 10%

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Koufu expects to pay a dividend of $1 per share next year, which will grow at 10% for the following 5 years. Afterward, the growth becomes 2%. The cost of capital for Koufu is 8%. What is today’s share price of Koufu?

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Fundamentals of Corporate Finance

ISBN: 978-0133400694

1st canadian edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi

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Posted Date: Jul 24, 2023 07:51 AM

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Koufu expects to pay a dividend of $1 per share next year, which will grow at 10%

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Fundamentals of Corporate Finance

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