7. A company recently paid a dividend of $1.20 per share. It is estimated that the companys...
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7. A company recently paid a dividend of $1.20 per share. It is estimated that the company’s dividend will grow at the rate of 15% per year for the next 5 years, then at a constant rate of 7% a year thereafter. The required return on this company is 8.80%, what is the estimated stock price today?(8)
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Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Posted Date: