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1. The CFO of Paramax Corporation (PMX) has just informed you that PMX stock will continue to pay a dividend of $4.25 for the next
1. The CFO of Paramax Corporation (PMX) has just informed you that PMX stock will continue to pay a dividend of $4.25 for the next 6 years. The current cost of equity ( re ) for PMX is 8.75%. After 6 years, the CFO expects: (1) re to drop to 7.50%, (2) the dividend to be increased to $4.75, and (3) the dividend to grow at 2% per year. What is the value of PMX stock?
please use excel and show formula.
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