D3 D D2 R- g (1+ R)' ' (1+ R)² ' (1+ R)² + +

D3<br>D<br>D2<br>R- g<br>(1+ R)' '<br>(1+ R)² ' (1+ R)²<br>+<br>+<br>

Extracted text: D3 D D2 R- g (1+ R)' ' (1+ R)² ' (1+ R)² + +

Suppose a firm is expected to increase dividends by 20% in<br>one year and by 15% in two years. After that dividends will<br>increase at a rate of 5% per year indefinitely. If the last<br>dividend was $1 and the required return is 20%, what is the<br>price of the stock?<br>O R= 20% 1<br>2<br>3<br>g = 20%<br>g = 15%<br>g = 5%<br>Do = 1.00<br>

Extracted text: Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that dividends will increase at a rate of 5% per year indefinitely. If the last dividend was $1 and the required return is 20%, what is the price of the stock? O R= 20% 1 2 3 g = 20% g = 15% g = 5% Do = 1.00

Jun 06, 2022

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D3 D D2 R- g (1+ R)' ' (1+ R)² ' (1+ R)² + +

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