QUESTION 6 Hubris Corp. is growing quickly. Dividends are expected to grow at a rate of...
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QUESTION 6 Hubris Corp. is growing quickly. Dividends are expected to grow at a rate of 10% for the next two years, with the growth rate falling off to a constant 2% thereafter. The required return is 7% and the company just paid a $0.65 dividend. Solve for the current share price. (it may be helpful to think about: What are the dividends each year for the next four years? When does growth become constant?) QUESTION 6 Hubris Corp. is growing quickly. Dividends are expected to grow at a rate of 10% for the next two years, with the growth rate falling off to a constant 2% thereafter. The required return is 7% and the company just paid a $0.65 dividend. Solve for the current share price. (it may be helpful to think about: What are the dividends each year for the next four years? When does growth become constant?)
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