Question
A company just paid a dividend of $2 per share. The company plans to increase its dividend by 11% the next 2 years, after which
A company just paid a dividend of $2 per share. The company plans to increase its dividend by 11% the next 2 years, after which it is expected the company will maintain a constant dividend growth rate of 4% forever. The stock has a required return of 16%. What will a share of the company's stock sell for 2 years from today?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
