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Author Question: Consider trying to value a company called Etail.com on January 1. It pays dividends annually on Dec. ... (Read 207 times)

bucstennis@aim.com

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on: Apr 25, 2021
Consider trying to value a company called Etail.com on January 1. It pays dividends annually on Dec. 31. Yesterday's dividend was $1. Dividends are expected to grow for the next 2 years at 10% and then settle down to a long-run growth rate of 5% in perpetuity. Because of the initial riskiness of the company, investors required a 20% rate of return over the first 2 years, but only a 12% rate of return thereafter. What is the fair price for the stock today, January 1?
◦ $13.76
◦ $36.77
◦ $14.36
◦ $12.75
◦ $14.96
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by bucstennis@aim.com on Apr 25, 2021

deja

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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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Ben Le

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Reply #2 on: Feb 6, 2022
Thank you!


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