What is the fair value for one share of the building company

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Reference no: EM133492740

Question: The Building Company Limited has just paid a dividend of $1.40 per share. The company is expanding very fast and is expected to grow at a rate of 25% for the next two years. After year two, the dividend is expected to settle to a constant growth rate of 2% annually into the indefinite future. What is the fair value for one share of the Building Company stock if the market required rate of return is 12%?

Reference no: EM133492740

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