Sping 23 Corporation is a thait up business that will not be able to pay dividends...
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Sping 23 Corporation is a thait up business that will not be able to pay dividends for the next four yeafs. However, in five yeais its anticipated that the company Whit be abte to pay a dividend of \$0.75 per shame with that dividend growing to $150 the nexi year. After that $1.50 dividernd it is believed that dividends wil grow at an ancual tate of b\% indelinitely. The Market necds a 14% return to justify the thks of this equity investment. Estimate the atock price as of fodiac (Do reot round inteinin calculations] Sping 23 Corporation is a thait up business that will not be able to pay dividends for the next four yeafs. However, in five yeais its anticipated that the company Whit be abte to pay a dividend of \$0.75 per shame with that dividend growing to $150 the nexi year. After that $1.50 dividernd it is believed that dividends wil grow at an ancual tate of b\% indelinitely. The Market necds a 14% return to justify the thks of this equity investment. Estimate the atock price as of fodiac (Do reot round inteinin calculations]
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Related Book For
Excellence in Business Communication
ISBN: 978-0136103769
9th edition
Authors: John V. Thill, Courtland L. Bovee
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