The dividends of a company are forecasted to grow at 12.30% per year for the next three years, and after that at 2.30% yearly forever. If the discount rate is 10.10% and a dividend of $7.00 was just paid, what should be the current share price?

a.

$128.80

b.

$119.27

c.

$130.02

d.

$106.21

e.

$59.64

Clear my choice

The dividends of a company are forecasted to grow at 12.30% per year for the next three years, and after that at 2.30% yearly forever. If the discount rate is 10.10% and a dividend of $7.00 was just paid, what should be the current share price?

a.

$128.80

b.

$119.27

c.

$130.02

d.

$106.21

e.

$59.64

Clear my choice