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You are considering buying a stock of Lululemon. Lululemon has just issued a dividend of $X. You want to have a rate of return of
You are considering buying a stock of Lululemon. Lululemon has just issued a dividend of $X. You want to have a rate of return of 7.7% on your investment on Lululemon, so you are willing to pay at most $145 for a stock of Lululemon. You believe that Lululemon will grow at a constant rate of 8.4% for the next 3 years and 5.7% after that indefinitely. What is the value of X? Round your answer in at least 2 decimal places. (e.g. $123.45678 should be entered as 123.46)
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