question archive Nestle Company recently paid a dividend, D0, of $2

Nestle Company recently paid a dividend, D0, of $2

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Nestle Company recently paid a dividend, D0, of $2.5. It expects to have a constant growth of 5% for 2 years followed by another constant growth rate of 10% for next 4 years and lastly a constant growth of 9% thereafter. The firm’s required rate of return is 12%.

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