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Polycorp has just paid a dividend of $5. The company pays dividends annually. Dividends are expected to grow at 0.13 pa for the next two
Polycorp has just paid a dividend of $5. The company pays dividends annually. Dividends are expected to grow at 0.13 pa for the next two years and for 0.04 thereafter for the foreseeable future. At what price should the shares sell for at theend of year twoif the required rate of return is 0.12?Answer to the nearest cent, e.g $5.678 should be entered as 5.68. Do not enter the $ sign.Notethat all growth rates and the required rate are expressed as a decimal, so .06 is 6% pa.
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