Question: Q A startup will start paying dividends at the end of year 6. The initial growth rate is 10%. This growth rate will continue until
Q A startup will start paying dividends at the end of year 6. The initial growth rate is 10%. This growth rate will continue until year 10. Starting from year 11, the growth rate drops to 5%. The discount rate is 15%. What is the current price of the stock if the initial dividend is $10?
| $83.85 | ||
| $58.14 | ||
| $59.52 | ||
| $85.49 | ||
| $57.82 |
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