EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202778
Author: DeMarzo
Publisher: PEARSON CUSTOM PUB.(CONSIGNMENT)
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Chapter 9, Problem 31P

a.

Summary Introduction

To determine: The share price based on the dividend growth rate in perpetuity.

Introduction: In perpetuity method, it is assumed that the growth will continue forever at a constant stream.

b.

Summary Introduction

To determine: The possible conclusion based on the assessment of CC’s future dividend growth.

Introduction: Growth rate is an expected rate of a company earning, dividend, and revenue, which will grow in future.

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EBK CORPORATE FINANCE

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Dividend explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=Wy7R-Gqfb6c;License: Standard Youtube License