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SuperGrowth is a relatively young tech company. It is going through a period of high growth and has thus decided not to
Posted: Sun May 29, 2022 5:57 pm
by answerhappygod
- Supergrowth Is A Relatively Young Tech Company It Is Going Through A Period Of High Growth And Has Thus Decided Not To 1 (30.4 KiB) Viewed 17 times
SuperGrowth is a relatively young tech
company. It is going through a period of high growth and has thus decided not to pay any dividends until the end of year 6. At the end of year 6 it will pay a dividend of $2. This dividend will grow at a rate of 25% for the next 4 years. After that SuperGrowth pledges to maintain a constant 5% growth rate in dividends, forever. How much will you pay for a share of SuperGrowth today?