Question
The dividend for Should I, Inc., is currently $2.05 per share. It is expected to grow at 24 percent next year and then decline linearly
The dividend for Should I, Inc., is currently $2.05 per share. It is expected to grow at 24 percent next year and then decline linearly to a perpetual rate of 6 percent beginning in four years. If you required a return of 13 percent on the stock, what is the most you would pay per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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