Lets say that the peak growth company is paying an annual


Constant Dividends with Finite holding period

Let’s say that the Peak Growth Company is paying an annual dividend of $2.00 and has decided to pay the same amount forever

Joe wants to earn an annual rate of return of 12% on this investment, and plans to hold the stock for 5 years, with the expectation of selling it for $20 at the end of 5 years

How much should he offer to buy the stock at?

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Financial Management: Lets say that the peak growth company is paying an annual
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