The growth in dividends of music inc is expected to be 8, Ask an Expert

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The growth in dividends of Music Inc. is expected to be 8% per year for the next two years, followed by a growth rate of 4% per year for three years; after this five-year period, the growth in dividends is expected to be 3% per year, indefinitely.

The required rate of return on Music Inc. is 11%. Last year's dividends per share were $2.75. What should the stock sell for today?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93047047

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