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In an analyst conference call House Outfitters Inc. updated the company's dividend forecast. For the next 3 years, no dividend will be paid. In years
In an analyst conference call House Outfitters Inc. updated the company's dividend forecast. For the next 3 years, no dividend will be paid. In years 4, 5, and 6 the company will pay $.50 per share. Immediately after the year 6 dividend, the annual dividend will begin to grow at a perpetual rate of 2.5%. Calculate the company's current share price. The required return is 11.5%.
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