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Flint Mechanical Inc.s first dividend of $2.5 per share is expected to be paid six years from today. From then on, dividends will grow by
Flint Mechanical Inc.s first dividend of $2.5 per share is expected to be paid six years from today. From then on, dividends will grow by 10 percent per year for five years. After five years, the growth rate will then slow to 5 percent per year in perpetuity. Assume that Flints required rate of return is 12 percent. What is the price of a share of Flint Mechanical today?
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