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A firm's cost of equity is 19%. Their current dividend is $3.00 per year and this dividend is expected to grow at 5% per year
A firm's cost of equity is 19%. Their current dividend is $3.00 per year and this dividend is expected to grow at 5% per year forever. What does the Gordon Growth model imply you should be willing to pay for the stock? Create a data table and plot the stocks value for different dividend growth rates (0 - 20%, by 2% increments) and costs of equity (14 - 24%, by 1%).
please use excel
thanks!
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