Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $8.30. You believe that
Posted: Fri Jul 01, 2022 7:51 am
Growing, Inc. is a firm that is experiencing rapid growth. Thefirm yesterday paid a dividend of $8.30. You believe that dividendswill grow at a rate of 21.0% per year for years one and two, 15.0%per year for years three and four, and then at a rate of 8.0% peryear thereafter. If you expect an annual rate of return of 24.0% onthis investment, what is the most you would pay for the stocknow?