Nachman industries just paid a dividend of d0 375 analysts


Question: Nachman Industries just paid a dividend of D0 = $3.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?

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Finance Basics: Nachman industries just paid a dividend of d0 375 analysts
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