What is the value of this firms stock to an investor

Reference no: EM13260973

The earnings and dividends of a firm are expected to grow at an annual rate of 15 percent over the next 4 years and then slow to a constant growth rate of 8 percent per year thereafter. The firm currently pays a dividend of $0.50 per share (D0 = $0.50). What is the value of this firm's stock to an investor who requires a 14 percent rate of return?

Reference no: EM13260973

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