Business
Business, 21.04.2020 19:11, joselynrobles

What is the value of a firm with initial dividend Div 1, growing for n years (i. e., until year n plus 1) at rate g 1 and after that at rate g 2 forever, when the equity cost of capital is r? (Hint: Find the present value of the n-year dividend stream which grows at g 1 per year and add the present value of the continuation value found at year n.)

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What is the value of a firm with initial dividend Div 1, growing for n years (i. e., until year n pl...

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