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Common stock valueVariable growth Lawrence Industries most recent annual dividend was BD 1.80 per share, and the firms required rate of return is 11%. Find
Common stock valueVariable growth Lawrence Industries most recent annual dividend was BD 1.80 per share, and the firms required rate of return is 11%. Find the market value of Lawrences shares when:
Dividends are expected to grow at 8% annually for 3 years, followed by a 0% constant annual growth rate in years 4 to infinity.
D4 = D3 X (1 + 0) G=0 AS ITS 0% P3 = D4 / rs - g2
a. $20.64
b. $2.27
c. $21.64
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