Starskeep, Inc., is a fast-growing technology company. The firm projects a rapid growth of 35 percent...
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Starskeep, Inc., is a fast-growing technology company. The firm projects a rapid growth of 35 percent for the next two years and then a growth rate of 20 percent for the following two years. After that, the firm expects a constant-growth rate of 8 percent. The firm's last dividend was $0.89. If your required rate of return for such stocks is 20 percent, what is the current price of the stock? (Do not round intermediate calculations. Round final answer to two decimal places.) Starskeep, Inc., is a fast-growing technology company. The firm projects a rapid growth of 35 percent for the next two years and then a growth rate of 20 percent for the following two years. After that, the firm expects a constant-growth rate of 8 percent. The firm's last dividend was $0.89. If your required rate of return for such stocks is 20 percent, what is the current price of the stock? (Do not round intermediate calculations. Round final answer to two decimal places.)
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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