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A firm just paid annual dividend of $2 per share. They promise dividend to grow t 30% next year, 20% the year after, 10% the
A firm just paid annual dividend of $2 per share. They promise dividend to grow t 30% next year, 20% the year after, 10% the third year. You assume dividend will grow constantly at 15% per year foreber after year 3. In addition your estimated EPS at year 3 is $14. Your required rate of return is 18%. using ddm price this stock. Using p/e multiple of `10x price this stock
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