T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20.
Next year they plan to pay a dividend of $2.00 and then they will
pay a dividend of $2.50 the following year. After that, the
dividend will grow at a constant rate of 3.2%.
If the required return is 9%, answer the following
questions.
a) Clearly label what the dividends will be for year
1 – year 3. Why do we stop at year 3?
b) Find the terminal price of the constant growth phase.
c) Find the current price of the stock.
T-Mobile US Inc. (ticker: TMUS) just paid a dividend of $1.20. Next year they plan to pay a dividend of $2.00 and then t
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