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WTF is expanding rapidly, and it currently needs to retain all of its earnings, hence it does not pay any dividends. However, investors expect WTF
WTF is expanding rapidly, and it currently needs to retain all of its earnings, hence it does not pay any dividends. However, investors expect WTF to begin paying dividends, with the first dividend D, coming 2 years from today. The dividend should grow rapidly-- at a rate of 93,4 per year--during years 3 and 4. After year 4, the company should grow at a constant rate of g per year. If the required return on the stock is rs, what is the value of the stock today (P.)? INPUT DATA D2 $1.07 g 3.50% 93,4 rs 25% 14%
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