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Burksquire Hashaway (BKH) stock will begin paying annual dividends in 4 years. BKHs first dividend is expected to be $1.16. From years 4 to 25,
Burksquire Hashaway (BKH) stock will begin paying annual dividends in 4 years. BKHs first dividend is expected to be $1.16. From years 4 to 25, dividends are expected to grow at a rate of 16% per year until the year 25 dividend has been paid. Then dividends will grow at a rate of 4% until the year 29 dividend has been paid. Finally, BKHs dividends are expected to decrease at a rate of 2% forever. What is the price of Company BKHs stock today if investors require a 16% return on their investment? Show your calculations.
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