The required rate of return on music inc is 11 last years


The growth in dividends of Music Inc. is expected to be 8% per year for the next two years, followed by a growth rate of 4% per year for three years; after this five-year period, the growth in dividends is expected to be 3% per year, indefinitely.

The required rate of return on Music Inc. is 11%. Last year's dividends per share were $2.75. What should the stock sell for today?

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Financial Management: The required rate of return on music inc is 11 last years
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