Question
Golden Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 7 years. At the end
Golden Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 7 years. At the end of year 7, the company will pay a $5 dividend. The following year, the company will pay a dividend of $5.5 per share and thereafter it will increase the dividends by 6% per year forever. If the required rate of return on this stock is 12%, what is the current (todays) share price? Round to the nearest $.01. Do not use the $ sign or other signs in your answer. For example if you obtain $32.728 then enter 32.72; if you obtain $43 then enter 43.00
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