Today your company paid a dividend (D0) of $3 per share. The growth rate of the dividend is expected to be 15% for the n

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answerhappygod
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Today your company paid a dividend (D0) of $3 per share. The growth rate of the dividend is expected to be 15% for the n

Post by answerhappygod »

Today your company paid a dividend (D0) of $3 per share. The
growth rate of the dividend is expected to be 15% for the next two
years, and then 6% thereafter. The cost of capital is 10%.
What is your estimate of your firm’s current stock price
(P0)?
a) $96.20 b) $79.50 c) $105.10 d) $85.10 e) $93.30
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