C. Analyst 3 agrees with Analyst 2 about growth rate of the company but she believes the company to be somewhat risky for the next 4 years. So she believes the required rate of return should be 10% for the first 4 years but 5% after that. What does Analyst 3 think the price should be?
(I just need C please. I need to know how to do it using the
1) Suppose Company ABC has just paid its shareholders a $3 dividend. You read reports by 3 different analysts about the future of Company ABC. Analyst 1 says that dividends will remain at $3 forever. Analyst 2 says that the company will steadily grow at a rate of 2% per year. Using our Dividend Discount and Gordon Growth models answer each of the following:
C. Analyst 3 agrees with Analyst 2 about growth rate of the company but she believes the company to be somewhat risky for the next 4 years. So she believes the required
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