Business, 23.07.2021 02:30 megankbrown

Suppose firm X just paid its annual dividend of $2.00 per share. You expect that the firm will continue to pay $2.00 per share (per year) for the next 10 years (times t=1 through 10), after which point you expect that the annual dividend per share will grow by 12% every year thereafter (forever). If the required rate of return is 15%, what is the current price per share?

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Suppose firm X just paid its annual dividend of $2.00 per share. You expect that the firm will conti...

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