Determine current price of the stock


Question: Bollinger Inc., currently pays a dividend of $2 per share. Dividends are expected to grow at a rate of 12% per year of the next five (5) years and then rapidly growing thereafter (indefinitely) at a rate of 6% per year. Calculate the current value of a share of Bollinger’s stock to an investor who requires a 15% required rate of return.

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Finance Basics: Determine current price of the stock
Reference No:- TGS020977

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