A stock is expected to pay a year-end dividend of $3.1, i.e., D = $3.1. The dividend is expected to decline at a rate of
Posted: Thu Apr 28, 2022 1:34 pm
A stock is expected to pay a year-end dividend of $3.1, i.e., D = $3.1. The dividend is expected to decline at a rate of 4.9% a year forever (g = -4.9%). If the company is in equilibrium and its expected and required rate of return is 7%, what is the expected price 6 years later? (if your price is $12.34. just enter "12.34")