Value of future cash flows a firm recently paid a 025


Value of Future Cash Flows A firm recently paid a $0.25 annual dividend. The dividend is expected to increase by 6 percent in each of the next four years. In the fourth year, the stock price is expected to be $40. If the required rate for this stock is 10 percent, what is its value?

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Financial Management: Value of future cash flows a firm recently paid a 025
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