A share of stock just recently released a dividend for $0.37 per share, and has expected growth
Fantastic news! We've Found the answer you've been seeking!
Question:
A share of stock just recently released a dividend for $0.37 per share, and has expected growth rate of 2.60% in the next year, 1.50% in the second year, 3.80% in the third year and 5.00% in the fourth year. The firm's price is currently $4.04 what is the terminal growth rate in year 5 and after that the market is pricing in for the firm given that the expected discount rate on this stock is 13.40%.
a. 4.20%
b. -1.81%
c. -9.20%
d. 3.39%
Related Book For
Advanced Accounting
ISBN: 978-1305084858
12th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date: