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Intro Walmart has just paid an annual dividend of $3.48. Dividends are expected to grow by 8% for the next 4 years, and then grow
Intro
Walmart has just paid an annual dividend of $3.48. Dividends are expected to grow by 8% for the next 4 years, and then grow by 3% thereafter. Walmart has a required return of 6%.
Attempt 1/3 for 10 pts.
Part 1
What is the expected dividend in four years?
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Attempt 1/3 for 10 pts.
Part 2
What is the terminal value in four years (P4P4)?
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Attempt 1/3 for 10 pts.
Part 3
What is the value of the stock now?
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