Rizzi Co. is growing quickly. The company just paid a $2 per share dividend and dividends are
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Question:
Rizzi Co. is growing quickly. The company just paid a $2 per share dividend and dividends are expected to grow at a 15%, 8% and 4% rate respectively for the next three years, with the growth rate falling off to a constant 3 percent thereafter.
If the required return is 10 percent, what is the current share price?
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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