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Company A has an EPS of $5.43 today. The company is currently not paying dividends. They expect to grow the earnings by 45% for the
Company A has an EPS of $5.43 today. The company is currently not paying dividends. They expect to grow the earnings by 45% for the next 6 years. After 6 years, they will start paying 83% in dividends. What should be the price of the stock today if they expect the dividends to grow by 5 after year 6? The cost of capital is 13.48.
NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68.
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