Question
Golden Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 7 years. However, the following
Golden Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 7 years. However, the following year, the company will start paying a dividend of $27 per share (at the end of the year following year 7) and thereafter it will increase the dividends by 6% per year forever. If the required rate of return on this stock is 13%, what is the current (todays) share price?
Do not use the $ sign. Use commas to separate thousands. Use to decimals. Round to the nearest cent. For example if you obtain $1,432.728 then enter 1,432.72; if you obtain $432 then enter 432.00
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