Variable Growth a Fast Growing Firm Recently Paid a Dividend

question 123

Multiple Choice

Variable Growth A fast growing firm recently paid a dividend of $1.00 per share.The dividend is expected to increase at a 25 percent rate for the next three years.Afterwards,a more stable 8 percent growth rate can be assumed.If a 10 percent discount rate is appropriate for this stock,what is its value?

• A)$12.50
• B)$75.93
• C)$83.13
• D)$120.24

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The action of speaking or acting on behalf of someone or the state of being so represented, often referred to in the context of individuals or groups acting on behalf of constituents in legislative bodies.

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