Question
Mike works for a prominent technology company. His company just paid a $1.50 dividend per share. The required return for his companys stock is 12%.
Mike works for a prominent technology company. His company just paid a $1.50 dividend per share. The required return for his companys stock is 12%.
(Input all answers as positive values, no commas, with no symbols ex. no $ or %. Input all % answers as whole numbers without symbols ex. 10.03 for .1003. Input all final answers two decimal places out.)
Consider the following information. Suppose Mikes company is expected to increase dividends by 12% in one year, and by 8% in two years. After that, his companys dividends will increase at a rate of 6% indefinitely. If the last dividend was $1.50 and the required rate of return in 12%, what is the current price of the stock.
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