Growing Real Fast Company (GRF)is expected to have a 25 percent growth rate for the next four years (affecting D1,D2,D3,and D4).Beginning in year five,the growth rate is expected to drop to 7 percent per year and last indefinitely.If GRF just paid a $2.00 dividend and the appropriate discount rate is 15 percent,then what is the value of a share of GRE?

Question

Quizplus · Accepted Answer

The Answer of Growing Real Fast Company (GRF)is expected to have a 25 percent growth rate for the next four years (affecting D1,D2,D3,and D4).Beginning in year five,the growth rate is expected to drop to 7 percent per year and last indefinitely.If GRF just paid a $2.00 dividend and the appropriate discount rate is 15 percent,then what is the value of a share of GRE?

Growing Real Fast Company (GRF)is Expected to Have a 25