Today your company paid a dividend (D0) of $3 per share. The growth rate of the dividend is expected to be 15% for the n
Posted: Wed Mar 30, 2022 3:49 pm
Today your company paid a dividend (D0) of $3 per share. The
growth rate of the dividend is expected to be 15% for the next two
years, and then 6% thereafter. The cost of capital is 10%.
What is your estimate of your firm’s current stock price
(P0)?
a) $96.20 b) $79.50 c) $105.10 d) $85.10 e) $93.30
growth rate of the dividend is expected to be 15% for the next two
years, and then 6% thereafter. The cost of capital is 10%.
What is your estimate of your firm’s current stock price
(P0)?
a) $96.20 b) $79.50 c) $105.10 d) $85.10 e) $93.30