Question
A year from now, a company is expected to pay its next dividend in the amount of $3 per share, after which the company plans
A year from now, a company is expected to pay its next dividend in the amount of $3 per share, after which the company plans to increase its dividend by 17% the next 2 years. The company is then expected to maintain a constant dividend growth rate of 4% forever. The stock has a required return of 13%. What will a share of the company's stock sell for 3 years from today?
Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.
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