ABC common stock is expected to have extraordinary growth in earnings and dividends of 26% per year for 2 years, after which the growth rate will settle into a constant 3%. If the discount rate is 15% and the most recent dividend was $1, what should be the approximate current share price (in $ dollars)? $
ABC common stock is expected to have extraordinary growth in earnings and dividends of 26% per year for 2 years, after which the growth rate will settle into a constant 3%. If the discount rate is 15% and the most recent dividend was $1, what should be the approximate current share price (in $ dollars)? $
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 18MC
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