A fast-growing firm recently paid a dividend of $0.80 per share. The dividend is expected to increase
Fantastic news! We've Found the answer you've been seeking!
Question:
A fast-growing firm recently paid a dividend of $0.80 per share. The dividend is expected to increase at a 15 percent rate for the next three years. Afterwards, a more stable 11 percent growth rate can be assumed.
If a 12 percent discount rate is appropriate for this stock, what is its value today? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date: