What should be the price of the stock

Reference no: EM131957992

Question: Company CS paid cash dividends of $1 per share. The management of the company estimates that the growth rate of dividends is 20% per year for the next ten years. After that the growth rate of dividends is expected to be 10% per year to infinity. What should be the price of the stock if the required rate of return of the investment is 15%?

Reference no: EM131957992

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