A common stock will pay a cash dividend of 4 next year, Ask an Expert

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A common stock will pay a cash dividend of $4 next year. After that the dividends are expected to increase indefinitely at 4% per year. If the discount rate is 14%, what would be the PV of the stream of dividend payments? Explain the formula to your answer and its application for estimating horizon value of business.

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Financial Management, Finance

Category:- Financial Management
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