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H-model Omega Foods currently pays a dividend of $2.00. The growth rate, which is currently 23%, is expected no decline linearly over the next 11 years to a stable rate of 15.75% thereafter. The required return is 23.625%. Calculate the current value of Omega. $ Number Round your answer to the nearest cent

H-model Omega Foods currently pays a dividend of $2.00. The growth rate, which is currently 23%, is expected no decline linearly over the next 11 years to a stable rate of 15.75% thereafter. The required return is 23.625%. Calculate the current value of Omega. $ Number Round your answer to the nearest cent

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 16P
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H-model Omega Foods currently pays a dividend of $2.00. The growth rate, which is currently 23%, is expected no decline linearly over the next 11 years to a stable rate of 15.75% thereafter. The required return is 23.625%. Calculate the current value of Omega. $ Number Round your answer to the nearest cent
Transcribed Image Text:H-model Omega Foods currently pays a dividend of $2.00. The growth rate, which is currently 23%, is expected no decline linearly over the next 11 years to a stable rate of 15.75% thereafter. The required return is 23.625%. Calculate the current value of Omega. $ Number Round your answer to the nearest cent
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