Bdu company has set up a new product line in january 2015, Ask an Expert

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BDU Company has set up a new product line in January 2015. The dividend is expected to grow at 8% per year for the next 15 years. Then at 3% thereafter. The required return is 12% and the dividend in the coming year is $3.00.

1) What is the stock price?

2) After 15 years, the BDU Company will change to a constant dividend policy. What is the stock price?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91887883

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