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
Posted: Thu May 19, 2022 7:07 am
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.
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.