Question
You are in the process of calculating the value Rockwell Companys common stock on 06-Dec-20. You expect that the company will pay its first ever
You are in the process of calculating the value Rockwell Companys common stock on 06-Dec-20. You expect that the company will pay its first ever dividend in 2023. Based on the cash dividends paid by the competitors in the industry, you estimate that Rockwells cash dividend will be Tk.4.25 per share. As the industry that Rockwell is in, is in the maturity stage of the life cycle, you believe that the companys dividends will grow at a constant rate of 5% every year. The required return on Rockwells stock is 10 percent. Calculate the value of Rockwell stock.
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