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Over the past 5 years, the dividends of Nova Inc. have grown at an annual rate of 15%. The current dividend (D 0 ) is
Over the past 5 years, the dividends of Nova Inc. have grown at an annual rate of 15%. The current dividend (D0) is $3.5 per share. The dividend is expected to grow to $4 next year, then grow at an annual rate of 12% for the following three years and 8% per year thereafter. You require a 28% rate of return on this stock. What would you be willing to pay for a share of Nova Inc. stock today?
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