lizdeleon248
21.04.2020 •
Business
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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