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TP Inc. is a young start-up company. No dividends will be paid on the stock over the next 4 years, because the firm needs to
TP Inc. is a young start-up company. No dividends will be paid on the stock over the next 4 years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a $10 per share dividend at the end of year 5 and thereafter it will increase the dividends by 3% per year forever. If the required rate of return on this stock is 12%, what is the current (todays) share price?
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