Due to the devastating economic impact of the global pandemic, a firm just announced that over...

Due to the devastating economic impact of the global pandemic, a firm just announced that over the next two years it will pay a reduced dividend of $1.50 per year. Three years from today it expects to pay a dividend of $4.80 and thereafter dividends are expected to grow at a constant annual growth rate of 2.8%. Assuming a discount rate of 11%, calculate the fair value of the firm's stock today.

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jeff jeffy answered 1 year ago

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