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Eat your fill restaurants is a young, quickly growing company. They just announced that next year they will pay their first dividend of $4.50 per
Eat your fill restaurants is a young, quickly growing company. They just announced that next year they will pay their first dividend of $4.50 per share. Starting then plan to grow their dividend at 15% per year for next 2 years. At that point, management plans to have grown so large that the companys new growth rate will be 3% per year. Investors require a return of 10% on this stock. a) Find D1, D2, D3, D4. b) What is their stock price in year 3? c) What is their stock price today?
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