Question
The MGC Company just paid $6 dividend per share and it expects for each of the next four years a high annual growth of 60%.
The MGC Company just paid $6 dividend per share and it expects for each of the next four years a high annual growth of 60%. Thereafter it will continue growing at the constant long-run rate of 5.0% annually. Assuming required annual return is 15%,
What should be the present price of the MGC stock?
412.88
398.73
501.33
489.22
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
