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Consider the following information for a public corporation: 1. The firms dividends are expected to grow at g = 10% until t = 2 yrs.
Consider the following information for a public corporation: 1. The firms dividends are expected to grow at g = 10% until t = 2 yrs. 2. At the start of year three, growth slows to g = 5%. 3. The stock just paid a dividend d0 = $1.00 4. Assume a market capitalization rate of rs = 12% Please compute the current price, P0, of this stock?
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