Estimate the per-share value of dg

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Delacour gathers the following facts and forecasts. The share price as of mid-August 2019 was $57. The current dividend is $1.37. The initial dividend growth rate is 20 percent, declining linearly during a 12-year period to a final and perpetual growth rate of 6 percent. Delacour estimates DGs required rate of return on equity as 12 percent. Using the H-model estimate the per-share value of DG.

Reference no: EM132523743

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