Supernormal growthsuppose a firms expected dividends for

Reference no: EM13572266

Supernormal growth:suppose a firm's expected dividends for the next three years are as follows: d1= $1.10, d2 = $1.20 and d3 = $1.30. after 3 years, the firm's dividends are expected to grow at 5% per year. What should the current price of the firm's stock (po) be today if investors require a rate of return of 12% on the stock.

Reference no: EM13572266

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