Two-stage dividend growth model nbspchartreuse county


Two-Stage Dividend Growth Model:  Chartreuse County Choppers, Inc., is experiencing rapid growth.  The company expects dividends to grow at 18% per year for the next 11 years before leveling off at 5% into perpetuity.  The required return on the company's stock is 12%.  If the dividend per share just paid was $1.94, what is the stock price?

 

 

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Finance Basics: Two-stage dividend growth model nbspchartreuse county
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