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What is value of stock when first becomes constant growth

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Reference no: EM132939847

Problem 1: Koman company's stock just paid a dividend of $1. The company's dividend is expected to grow at a rate of 0.27 this year, 0.16, next year, 0.07 for every year after that. If Koman has a required rate of return of 0.14, what is terminal value of the stock or what is the value of the stock when it first becomes a constant growth stock?

Reference no: EM132939847

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