attletale News Corporation has been growing at a rate of 20% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years. If the last dividend paid was $3, what will the next dividend be? If the discount rate is 17% and the steady growth rate after 3 years is 3%, what should the stock price be today?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter9: The Cost Of Capital
Section: Chapter Questions
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Tattletale News Corporation has been growing at a rate of 20% per year, and you expect this growth rate in earnings and dividends to continue for another 3 years.

If the last dividend paid was $3, what will the next dividend be?

If the discount rate is 17% and the steady growth rate after 3 years is 3%, what should the stock price be today?

 

 

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