BMW Company currently (t = 0) earns (EPS) $20.00 per share, and has a payout...

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Accounting

BMW Company currently (t = 0) earns (EPS) $20.00 per share, and has a payout of 25 percent (Dividends 20%). Dividends are expected to grow at a constant rate of g=6 percent per year. The required rate of return is i=15 percent.

  1. Calculate D0
  2. Calculate D1
  3. Calculate the price

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