PD inc is expected to pay a dividend of $4.75 three years from now. Thereafter, dividends are expected to grow at a long-term rate of
PD inc is expected to pay a dividend of $4.75 three years from now. Thereafter, dividends are expected to grow at a long-term rate of 10.53%. PD, Inc.'s, required rate of return (rs) of it's common stock is 15%. Rounded to the nearest dollar, what is pd's stock expected to be worth four years from now?
a.$129
b. $131
c. $130
d. $132
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
