Question
An analyst has been following American Dream stock. He projects the following dividends for the next three years: YEAR 1 2 3 Dividend $1.71 $2.16
An analyst has been following American Dream stock. He projects the following dividends for the next three years:
| YEAR | 1 | 2 | 3 |
|---|---|---|---|
| Dividend | $1.71 | $2.16 | $2.97 |
The analyst notes that American Dream stock has a required return of 10.24%. The analyst projects that dividends will grow at a constant rate of 4.00% per year after year 3.
What is the current price of the stock if his assumptions are correct?
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Cryptocurrencies Complete Guide 2023 Discover The Fundamentals Technologies And Investment Strategies
Authors: George Elias
2023 Edition
B0C1HVLDXT, 979-8389530195
