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What are the assumptions about dividend payout in h model

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Reference no: EM132492502

Question 1: ABC corporation has recently reported dividends per sharev od $3. The firm is expected to deliver earnings growth of 20% next year, after which the growth rate is expected to decline linearly over the following five years to 6%. The stock is expected to have a cost of equity of 10%. Estimate the value of the stock using H Model. What are the assumptions about dividend payout in the H Model?

Reference no: EM132492502

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