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PROBLEM # 8 ( 5 Points ) Panther City Pharmaceuticals ( Motto: Making drugs guaranteed to change your life and maybe your genes ) stock
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Panther City Pharmaceuticals Motto: Making drugs guaranteed to change your life and maybe your genes stock has a required rate of return of The firm has an impressive growth rate in earnings and dividends forecast until Unfortunately, this rapid growth rate is expected to end in three years due to increased competition and ending patent protection. Earnings and dividends are expected to grow at a constant and sustainable growth rate of percent after Based on s dividend paid last week, analysts have prepared the following forecast of dividends and thirdyear stock price. Given these projections, what is Panther City's equilibrium stock price today?
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