Prescott Pharmaceuticals will pay an annual dividend of $0.92 one year from now at t=1....
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Prescott Pharmaceuticals will pay an annual dividend of $0.92 one year from now at t=1. Analysts expect this dividend to grow at % per year thereafter until the end of year. Dividends are then expected to be stable until t=. Afterwards, dividends decline at a rate of 4.0% annually (the dividend at t= is 4.0% smaller than the payment at t=) and are paid in perpetuity. a) According to the dividend-discount model, what is the value of a Prescott Pharmaceuticals share if the firm's cost of equity capital is %?. The value of per share is $ (Round your answer to the nearest cent) Prescott Pharmaceuticals will pay an annual dividend of $0.92 one year from now at t=1. Analysts expect this dividend to grow at % per year thereafter until the end of year. Dividends are then expected to be stable until t=. Afterwards, dividends decline at a rate of 4.0% annually (the dividend at t= is 4.0% smaller than the payment at t=) and are paid in perpetuity. a) According to the dividend-discount model, what is the value of a Prescott Pharmaceuticals share if the firm's cost of equity capital is %?. The value of per share is $ (Round your answer to the nearest cent)
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