Friday, 4 October 2019

Your company paid a dividend of $3.00 last year (D0 =3.0). The growth rate is expected to be 10

Your company paid a dividend of $3.00 last year (D0 =3.0).  The growth rate is expected to be 10 percent for first year, 8 percent the second year, then 7 percent for the third year, and then the growth rate is expected to be a constant 6 percent thereafter.  The required rate of return on equity (rs) is 10 percent.  What is the company’s current stock price (i.e., intrinsic value)?       

Contact Us For Tutoring:

Name

Email *

Message *