Question: Question 3: Let say a company is experiencing a supernormal growth (non-constant growth) rate in cash dividends of 20% for each of the next 5
Question 3: Let say a company is experiencing a supernormal growth (non-constant growth) rate in cash dividends of 20% for each of the next 5 years. After that, the dividend growth rate is expected to be 5% per year forever. The latest annual dividend, is $0.75. The required return is 22%.
- What is the stock and its main forms?
- How much does the companys stock worth?
- Please provide individually your own judgement upon the investment.
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