You expect ibms dividend to grow at a rate of 10 per year


IBM just paid a dividend of $1.2 per share.

You expect IBM's dividend to grow at a rate of 10% per year for the next three years, and then you expect constant dividend growth of 5% forever.

Based on the risk of IBM stock, you require a return of 12%. Using the dividend discount model, what is the value of IBM stock?

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Financial Management: You expect ibms dividend to grow at a rate of 10 per year
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