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1. Forever 21 is expected to pay an annual dividend of $3.28 per share in one year, which is then expected to grow by 4%
1. Forever 21 is expected to pay an annual dividend of $3.28 per share in one year, which is then expected to grow by 4% per year. The required rate of return is 14%. a. What is the current stock price? b. What is the current stock price if the annual dividend of $3.28 has just been paid? (i.e. paid yesterday or earlier today) c. What is the current stock price if the annual dividend of $3.28 his about to be paid? (i.e. paid tomorrow or later today)
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