Question
A firm pays out all earnings in dividends. The firm just paid a $1 dividend. The dividend is expected to grow at a rate of
A firm pays out all earnings in dividends. The firm just paid a $1 dividend. The dividend is expected to grow at a rate of 10% per year for the next 3 years. Afterwards, the dividend is expected to grow at a rate of 4% per year forever. If the cost of stock is 14% what is the stock price?
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Forecasting Methods And Applications
Authors: Spyros G. Makridakis, Steven C. Wheelwright, Rob J Hyndman
3rd Edition
0471532339, 9780471532330
