Te firms dividends are expected to grow at g 20 until t


Consider the following information: The firm's dividends are expected to grow at g = 20% until t = 3 years. At the start of year four, growth slowths to gs=%5. The stock just paid a dividend Div0 = $1.00. Assume a Market capitalization rate of k = 12%. What is the price, P0, of this stock?

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Financial Management: Te firms dividends are expected to grow at g 20 until t
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