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Problem:

Thirsty Cactus Corp. just paid a dividend of $2.30 per share. The dividends are expected to grow at 15 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely.

Required:

Question: If the required return is 14 percent, what is the price of the stock today?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162033

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