Determine the present value of one share of stock


Combined Communications is new firm in rapidly growing industry. Company is scheduling on increasing its annual dividend by 22 percent year for next 4 years and then reducing growth rate to 6 percent per year. Company just paid its annual dividend in amount of $1.30 per share. Determine the present value of one share of this stock if required rate of return is 9.00 percent?

$79.03

$64.84

$72.62

$69.10

$78.72

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Business Management: Determine the present value of one share of stock
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