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An Expert said that company X's stock will start paying dividends in the coming years due to the cash flow it is generating. Company X
An Expert said that company X's stock will start paying dividends in the coming years due to the cash flow it is generating. Company "X" will start paying its first dividend 4 years from now in the amount of $50 per share thereafter, growth rate would be a constant rate of 3%, forever. "X" has a debt-to-equity ratio (D/E) of 0.2, the annual YTM on the company's bonds averages 4.4% and the company's tax rate is projected to be 30% in the future. If the risk-free rate is 2.8%, the market risk premium is 6% and "X" companies' Beta is 1.2, what should the stock sell for today based on a discounted valuation of the future dividends that the Expert projected
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