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The In-Tech Co. just paid a dividend of $1 per share. Analysts expect its dividend to grow at 25% per year for the next three
The In-Tech Co. just paid a dividend of $1 per share. Analysts expect its dividend to grow at 25% per year for the next three years and then at a constant growth rate per year thereafter. The estimate of the constant growth rate of dividends is based on the long-term return of equity 25% and a payout ratio of 70%. If the required rate of return on the stock is 15%, what is the current value of the stock?. Show you inputs.
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