10. Joven Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 4 years
Posted: Tue Nov 16, 2021 8:20 am
10. Joven Corp. is a young start-up company and therefore is not
paying any dividends on the stock over the next 4 years. At the end
of year 4, the company will pay a $3 dividend. The company will pay
a $1.70 per share dividend at the end of year 5 and thereafter it
will increase the dividends by 5% per year forever. If the required
rate of return on this stock is 7%, what is the current (today’s)
share price? Show your answer to the nearest $.01. Do not use the $
or , signs in your answer.
Your Answer:
paying any dividends on the stock over the next 4 years. At the end
of year 4, the company will pay a $3 dividend. The company will pay
a $1.70 per share dividend at the end of year 5 and thereafter it
will increase the dividends by 5% per year forever. If the required
rate of return on this stock is 7%, what is the current (today’s)
share price? Show your answer to the nearest $.01. Do not use the $
or , signs in your answer.
Your Answer: