A companys recent dividend is 1 per share the company


A company's recent dividend is $1 per share. The company expects that the dividends will grow at 10% for the next three years. After that the dividends will increase at 5% forever. Its stock beta is 1.0. Currently, the expected market return is 12%, and the risk-free rate is 7%. What is the present value of the common stock?

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Financial Management: A companys recent dividend is 1 per share the company
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