What is the value of the stock today


Company C will have earnings per share of $5.00 this year. It pays a dividend equal to 35% of net income. It is expecting that income and dividends will grow by 25% next year and 20% the year after. Then it is expecting to return to its historical growth rate of 8% per year. The relevant market discount rate is 15%.

What is the value of the stock today?

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Finance Basics: What is the value of the stock today
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