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Suppose a firm just paid a dividend of $1.00. You expect that the firm will grow at 40% next year, 10% the following year, and
Suppose a firm just paid a dividend of $1.00. You expect that the firm will grow at 40% next year, 10% the following year, and at a constant rate of 8% thereafter. The required return on this firms equity is 13%. What is the price of the stock? Note: Show your answer in units of dollars, use plain numbers with at least two digits after the decimal (e.g., for $12,345.67, type 12345.67).
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