Future growth, You are an analyst in charge of valuing

Future growth

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You are an analyst in charge of valuing common stocks. You are expected to give a buy-hold-sell recommendation for DEF, a pharmaceutical company specializing in anti-inflammatory drugs. Observing the current market trends, you expect future growth in this company. You expect the firm to pay its first dividend of $6.00 per share 2 years from today. You expect the dividends to increase by 50.0% the following year. The next year dividends will increase by 40.0%, and the following year dividends will increase by 20.0% and thereafter dividends will increase by 5% each year in perpetuity.

DEF’s required rate of return is 30.0% for the next 3 years, and thereafter the required rate of return will be 15%.

Reference no: EM1341299

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Future growth : You are an analyst in charge of valuing common stocks. You are expected to give a buy-hold-sell recommendation for DEF, a pharmaceutical company specializing in anti-inflammatory drugs. Observing the current market trends, you expect future growth in..

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Future growth

Reference no: EM1341299

Reference no: EM1341299

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