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Hellen's Pottery Co.'s stock recently paid a 1.5 dividend. This dividend is expected to grow by 15% for the next 3 years, and then grow
Hellen's Pottery Co.'s stock recently paid a 1.5 dividend. This dividend is expected to grow by 15% for the next 3 years, and then grow forever at a constant rate, g. The current stock price is 40.92. If rs = 10%, at what constant rate is the stock expected to grow following Year 4?
I figured out the D1 through D3 = 4.9217 but am stuck on how to plug it into the growth model. Could you explain that last part to me in a way I can use excel?
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