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A fast-growing firm recently paid a dividend of $0.50 per share. The dividend is expected to increase at a 30 percent rate for the next
A fast-growing firm recently paid a dividend of $0.50 per share. The dividend is expected to increase at a 30 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed. |
If a 12.5 percent discount rate is appropriate for this stock, what is its value? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
Stock value | $ |
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