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Rockstar Company is a relatively new that has only been in business for 2 years. During this time, it has enjoyed significant growth and is
Rockstar Company is a relatively new that has only been in business for 2 years. During this time, it has enjoyed significant growth and is finally prepared to pay dividends on its stock. Over the next four years, it is anticipating paying $12, $8, $7, and $2.50 respectively. Rockstar has also made a commitment to maintain a constant 5% growth rate in dividends thereafter. If the required return on the stock is 12%, what is the current share price?
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