Question
Applied Sink Inc. (ASI) just paid a dividend of $2.50 per share.Its dividends are expected to grow at 18% a year for the next years,
Applied Sink Inc. (ASI) just paid a dividend of $2.50 per share.Its dividends are expected to grow at 18% a year for the next years, 15% a year for the years 2 and 3, 12% for year 4, and at a constant rate of 6% per year thereafter.The required rate of return is 16%.
A.What will be the value of the ASI stock at the end of year 4 (i.e. P4)?
B. What is the current market price (P0) of the ASI stock?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
