Rotterdam Steel Inc. is expected to have a high growth rate in the next 3 years so

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Rotterdam Steel Inc. is expected to have a high growth rate in the next 3 years so its dividends are expected to grow at 15% per year in the next 3 years. After that dividends are expected to grow at a stable 5% per year forever. Its most recent dividend was $5 per share and its equity cost of capital is 11%. What is the stock's intrinsic value per share (closest to)?

Posted Date: May 13, 2024 02:30 AM

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Rotterdam Steel Inc. is expected to have a high growth rate in the next 3 years so

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Intrinsic Value of Rotterdam Steel Inc This scenario describes a twostage dividend growth model DDM ... View the full answer

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