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Vixons stock is selling for $8.94 per share. The firms income, assets, and stock price have been growing at an annual 15 percent rate and
Vixons stock is selling for $8.94 per share. The firms income, assets, and stock price have been growing at an annual 15 percent rate and are expected to continue to grow at this rate for 3 more years. No dividends have been declared yet, but the firm intends to declare a dividend of D3 = $2.00 at the end of the last year of its supernormal growth. After that, dividends are expected to grow at the firms normal growth rate of 6 percent. The firms required rate of return is 18 percent. The stock is
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