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| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
12.  Calculate a assuming Alpha is successful and Beta is also success- ful but doesn’t do quite as well as Alpha. Assume Softek grows at 25% for two years and then at 18% for two more. After that it continues to grow at  6%. (Hint: Don’t be confused by the fact that there are now three growth periods. Just calculate successive dividends, multiplying by one plus the growth rate in effect until you get the first dividend into the period of normal growth. Then apply the Gordon model. A time line is a must for this problem.)
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