(Non-constant growth)Pettyway Corp’s next annual dividend (D1) is expected to be $4. After that, the growth rate in dividends over the next three years is forecasted at 6%. And after that, Pettyway’s growth rate in dividends is expected to be 8%. The required return is 11%. Then the value of the stock is $__________.
(Non-constant growth)Pettyway Corp’s next annual dividend (D1) is expected to be $4. After that, the growth rate in dividends over the next three years is forecasted at 6%. And after that, Pettyway’s growth rate in dividends is expected to be 8%. The required return is 11%. Then the value of the stock is $__________.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 16MC
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(Non-constant growth)Pettyway Corp’s next annual dividend (D1) is expected to be $4. After that, the growth rate in dividends over the next three years is
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