
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Company does not currently pay dividends. the company will start with a 0.50 dividend at the end of year 3 and grow it by 10% for each of the next 6 years until it reaches nearly $1.00. After 6 years of growth, it will fix its dividend at $1.00 forever. if you want a 15% return on this stock, what should you pay today given this future dividend stream?
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