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Agarwal Technologies was founded 1 0 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings
Agarwal Technologies was founded years ago. It has been profitable for the last years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $ dividend years from today, then to increase it at a relatively rapid rate for years, and then to increase it at a constant rate of thereafter. Management's forecast of the future dividend stream, along with the forecasted growth rates, is shown below. Assuming a required return of what is your estimate of the stock's current value?
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