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Phoenix Motor Corp was hit by a crisis four years ago and stopped paying dividends. Now, Phoenix Motor Corp. has just announced a $1 per
Phoenix Motor Corp was hit by a crisis four years ago and stopped paying dividends. Now, Phoenix Motor Corp. has just announced a $1 per share dividend. Dividends will increase to a normal level of $3 when the company completes its recovery over the next three years. After that, dividend growth will settle down to a moderate long-term growth rate of 6%. Assume dividends of $1, $2 and $3 for years 1, 2, 3. Phoenix stock is selling at $50 per share. Write down an equation from which the interest rate being used to discount Phoenixs future dividends can be solved. If you are able to solve it using a computer (Excel, matlab, etc.), do it! Dont worry if you cant, just provide a guess
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