Question
In three years, a company is expected to pay its first dividend of $1.44 per share per year. At that point, the dividend is expected
In three years, a company is expected to pay its first dividend of $1.44 per share per year. At that point, the dividend is expected to grow at 6% per year indefinitely. Also suppose the required rate of return is 9%.
| Dividend | $1.44 |
|---|---|
| Growth | 6% |
| Required | 9% |
What is the value of the stock?
The value of the stock is $ . Round your answer to the nearest two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Evolution Of Nordic Finance
Authors: Steffen Elkiær Andersen
2011th Edition
0230241557, 978-0230241558
