Question
PerfectlySoft Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the
PerfectlySoft Corp. is experiencing rapid growth. Dividends are
expected to grow at 30 percent per year during the next three years, 20 percent over the following
year, and then 6 percent per year thereafter indefinitely. The required return on this stock is 14
percent, and the stock currently sells for $56.20 per share. What is the projected dividend for the
coming year?
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
