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pts A new tech stock is expected to pay a dividend of $1.00 per share next year (D1). Dividends will grow at 5% per year
pts A new tech stock is expected to pay a dividend of $1.00 per share next year (D1). Dividends will grow at 5% per year through Year 7 (D, will be $1.34 per share). After that, dividends will grow at modest pace of $0.10 per year, forever (Dg is $1.44...., D20 is $2.64, etc.). Investors require a return of 11.20 percent (you can now calculate how much should investors should be willing to pay for this stock). Determine what percentage of the current price is based on the dividends to be received over the next 20 years. Answer in decimal format, truncated to 3 decimal places. For example, if your answer is 67.679%, enter "0.676
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