Question
A fast-growing firm recently paid a dividend of $0.40 per share. The dividend is expected to increase at a 25 percent rate for the next
A fast-growing firm recently paid a dividend of $0.40 per share. The dividend is expected to increase at a 25 percent rate for the next four years. Afterwards, a more stable 10 percent growth rate can be assumed.
If an 11.5 percent discount rate is appropriate for this stock, what is its value?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Get StartedRecommended Textbook for
Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
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