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You are planning to buy a stock that has just paid a dividend (DO) of $1.20. In addition, you anticipate the following growth rates:
You are planning to buy a stock that has just paid a dividend (DO) of $1.20. In addition, you anticipate the following growth rates: Year 1 107% Year 2 = 68% Year 3 -29% (note the negative sign) Year 4 = 0% Year 5 = 15% Years 6 through infinity = 3% Assume a discount rate of 10%. Based on this, what is the value of the stock today? (Round all dividend and price calculations to the nearest cent). $
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