Nonconstant Dividend Growth Valuation Assignment
February 16th, 2020
Nonconstant Dividend Growth Valuation
Conroy Consulting Corporation (CCC) has a current dividend of D0 = $2.20. Shareholders require a 9% rate of return. Although the dividend has been growing at a rate of 28% per year in recent years, this growth rate is expected to last only for another 2 years (g0,1 = g1,2 = 28%). After Year 2, the growth rate will stabilize at gL = 6%.
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