The Casey Company is expected to pay a dividend of $1.60 in one year (i.e., at t=1);
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The Casey Company is expected to pay a dividend of $1.60 in one year (i.e., at t=1); thereafter, company dividends are expected to grow at 10% per year for the four years after that (i.e., t=2 through t=5). After t=5 (i.e., beginning at t=6) dividends will grow at 3% per year, forever. The opportunity cost of capital is 12%, what is the current price of the common stock?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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