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Meridian Industries just paid a dividend of $1.85. You expect the dividend to grow at 14% for the next two years, and then the dividend
Meridian Industries just paid a dividend of $1.85. You expect the dividend to grow at 14% for the next two years, and then the dividend will grow at 4.25% for the foreseeable future. You estimate the appropriate discount rate is 11.30%. Using this information you estimate the current price for Meridian is closest to:
A. | $28.70. | |
B. | $29.62. | |
C. | $32.54. |
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