Firm a expects its dividend to grow at the following rates, Ask an Expert

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Firm A expects its dividend to grow at the following rates: Year 1 – 5%, Year 2 – 7%, Year 3 – 10%, and from Year 4 forward a constant rate of 6%. It just paid its dividend at $3 per share (Year 0). Its cost of equity is 12%. What should its stock be selling at?

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Financial Management, Finance

Category:- Financial Management
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