What is the value Per share of your firm's stock?‚Äč

label Mathematics
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schedule 1 Day
account_balance_wallet $5

The company has a required rate of return 7%. The company has completed a new project that is expected to grow dividends at a rate of 50% the first year and 25% the following year,after which growth should be at a constant rate of 6%. The last dividend paid was $1.00. What is the value Per share of your firm's stock?

Nov 18th, 2015

Thank you for the opportunity to help you with your question!

value Per share = 1*1.5/1.07 + 1*1.5*1.25/1.07^2 + (1*1.5*1.25*1.06/(7%-6%))/1.07^2= 176.64

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Nov 18th, 2015

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