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Void Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to
Void Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 2% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The companys most recent dividend, D0, was $3.56, and its required rate of return is 11%. What is the current price of the common stock?
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