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Today your company paid a dividend (D0) of $3 per share. The growth rate of the dividend is expected to be 10% for the next
Today your company paid a dividend (D0) of $3 per share. The growth rate of the dividend is expected to be 10% for the next two years, and then 6% thereafter. The cost of capital is 10%. For each question, choose the closest answer.
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What is your estimate of your firms current stock price (P0)?
a) $96.20 b) $79.55 c) $85.55 d) $78.31 e) $72.31
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