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Because of the current situation, Airlines Co. has decided that the next year is going to pay $25 worth of dividends, the dividend in the
Because of the current situation, Airlines Co. has decided that the next year is going to pay $25 worth of dividends, the dividend in the year 2 will be $21 and in year 3 the company will pay a dividend of $26. The company is optimistic about the future, so after year 3 dividends will increase at a constant rate of 5% every year forever. Knowing that the required rate of return is 9%, what is the price of the stock today?
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