Assume that the average firm in your company industry is

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Assume that the average firm in your company industry is expected to a constant rate of 6% and that the dividend is 7%. Your company is about as risky as the average firm n the industry but it has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 50% ( d1 =do(1.50) this year and 25% the following year, after which growth should return to the 6% industry average. If tithe last dividend paid (d0) was $1 what is the value per share of your firms stock?

Reference no: EM13596239

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