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Mack Industries just paid a dividend of $2.00 per share (i.e., Div0 = $2.00). Analysts expect the company's dividend to grow 20 percent this year
Mack Industries just paid a dividend of $2.00 per share (i.e., Div0 = $2.00). Analysts expect the company's dividend to grow 20 percent this year (i.e., Div1 = $2.40), and 15 percent next year, and 10 percent the year after. After three years the dividend is expected to grow at a constant rate of 5 percent. The required rate of return on the company's stock is 12 percent. Calculate the expected price of the stock (P0)
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