Question
35. Nonconstant Growth Storico Co. just paid a dividend of $3.35 per share. The company will increase its dividend by 16 percent next year and
35. Nonconstant Growth Storico Co. just paid a dividend of $3.35 per share. The company will increase its dividend by 16 percent next year and will then reduce its dividend growth rate by 4 percentage points per year until it reaches the industry average of 4 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the companys stock is 10.5 percent, what will a share of stock sell for today?
I am trying to set up a table on MS Excel to use as a calculator for this problem. I would prefer each individual calculation within the equation explained to me with the proper cells. Thank you!
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