Question
The dividend for Should I, Incorporated, is currently $1.70 per share. It is expected to grow at 12 percent next year and then decline
The dividend for Should I, Incorporated, is currently $1.70 per share. It is expected to grow at 12 percent next year and then decline linearly to a 3 percent perpetual rate beginning in four years. If you require a 16 percent return on the stock, what is the most you would pay per share? Note: 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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