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MDK. Inc. is a high growth firm that has never paid a dividend. The company just issued a press release, stating that next year it
MDK. Inc. is a high growth firm that has never paid a dividend. The company just issued a press release, stating that next year it plans on paying an annual dividend of $0.34. It also stated that dividends are expected to increase by 40% per year for each of the following 5 years and then increase by 6% annually thereafter. The required rate of return for MDK. Inc. is 15%. What is MDKs expected share price at the end of year 7
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