Novak Financial Ltd, has completed a fundamental analysis of Splish Energy ine. Splihh Energy is...
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Novak Financial Ltd, has completed a fundamental analysis of Splish Energy ine. Splihh Energy is a young company and expects to invest heavily in focilities and research and development during the next five years, it expects to reap the benefits of its research and development during years 6 to 10. However, it expects rivals to enter the market and margins and profitability to stabilize at a lower level after year 10 . The detalls of the analysis are presented below: The current dividend for $ plish Energyis $3 and the required rate of return for this type of firm is 15 percent, Determine the current stock price for Splish Energy, (Round present value foctar colculations to 5 decimal ploces, es 1.02512. Round other intermediate calculations to 4 decimal places, es. 10.2512 or 10.2512% and final answer to 2 decimal places, es. 10.25.) The current dividend for Splish Energy is $3 and the required rate of return for this type of firm is 15 percent. Determine the current stock price for Splish Energy. (Round present value factor calculations to 5 decimal ploces, eg. 1.02512. Round other intermediate calculations to 4 decimal places, es: 10.2512 or 10.2512% and final answer to 2 decimal places, es. 10.25)
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