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Company BSD just paid a dividend of $1.5. A financial analyst predicts that the company will have a very high growth rate of 25 percent
Company BSD just paid a dividend of $1.5. A financial analyst predicts that the company will have a very high growth rate of 25 percent in the next five years. The growth rate of the company will slow down to 20 percent for next three years. After that, the growth rate of the company will be a constant 15 percent. If the require rate of return of the company is 17 percent, what should be the price of the stocks of this company?
$145.31 | ||
$46.40 | ||
$57.77 | ||
$76.89 |
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