Loreal will pay an annual dividend of 065 one year from now, Ask an Expert

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L'Oreal will pay an annual dividend of $0.65 one year from now. Analysts expect this dividend to grow at 12% per year thereafter until the fifth year. After then, growth will level off at 2% per year. According to the dividend-discount model, what is the value of a share of L'Oreal stock if the firm’s equity cost of capital is 8%?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91546271

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