LMS Integrated for MindTap Finance, 1 term (6 months) Printed Access Card for Brigham/Houston's Fundamentals of Financial Management, Concise Edition, 9th
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Chapter 9, Problem 16P

NONCONSTANT GROWTH Carnes Cosmetics Co.’s stock price is $30, and it recently paid a $1.00 dividend. This dividend is expected to grow by 30% for the next 3 years, then grow forever at a constant rate, g; and rs = 9%. At what constant rate is the stock expected to grow after Year 3?

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LMS Integrated for MindTap Finance, 1 term (6 months) Printed Access Card for Brigham/Houston's Fundamentals of Financial Management, Concise Edition, 9th

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Dividend disocunt model (DDM); Author: Edspira;https://www.youtube.com/watch?v=TlH3_iOHX3s;License: Standard YouTube License, CC-BY