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Company A has an EPS of $7.91 today. The company is currently not peying dividends. They expect to grow the eamings by 31% for the
Company A has an EPS of $7.91 today. The company is currently not peying dividends. They expect to grow the eamings by 31% for the next 6 years. After 6 years, they will start paying 76% in dividends. What should be the price of the stock today if they expect the dividends to grow by 7 after year 6 ? The cost of capital is 11.78. NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68
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