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FatEx is planning to pay dividends of $1.20, $2.60, $3.00, and $4.50 in years 1 through 4, respectively. Starting in year 5, it will pay
FatEx is planning to pay dividends of $1.20, $2.60, $3.00, and $4.50 in years 1 through 4, respectively. Starting in year 5, it will pay the dividends of $3.50 a year forever. If the required return is 6%, how much is the stock worth today?
I think i can get through the first step of the multistage model OK, but when I get to stage 2 i am stumped. Do I not need g? I desperately need a step by step. Thank you!
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