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A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.5. It is expected to pay a dividend of $2.8 exactly five years from now. The dividend is expected to grow at a rate of 5% per year forever after that point. The required return on the stock is 14%. The stock's estimated price per share exactly TWO years from now, P2, should be $ _ Margin of error for correct responses: +/-.10 Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your "final" response to 2 decimal places (example: if your answer is 12.3456, 12.3456 %, or $12.3456, you should enter 12.35).
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