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Author Question: Discraft Inc. is expected to pay an annual dividend of $1 at the end of the current year. (Discraft ... (Read 28 times)

Ebrown

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on: Apr 25, 2021
Discraft Inc. is expected to pay an annual dividend of $1 at the end of the current year. (Discraft pays its dividends annually.) The dividend is expected to grow quickly over the ensuing year at the rate of 20%. Starting two years from today the growth rate of dividends will fall to a rate of 3% and continue at that rate in perpetuity. Investors require a 12% return on the stock. Estimate the market price of the shares of Discraft in one year's time (at Year 1) just after the next dividend is paid.
◦ $11.24
◦ $11.62
◦ $12.80
◦ $13.33
◦ $14.82
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Ebrown on Apr 25, 2021

duy1981999

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Ebrown

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

Sarahjh

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Reply 3 on: Yesterday
Excellent

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