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You expect a company to pay the following quarterly dividends during the next six quarters (the Quarter 1 dividend will be paid one quarter from
You expect a company to pay the following quarterly dividends during the next six quarters (the Quarter 1 dividend will be paid one quarter from today). Quarter 1 $0.20 Quarter 2 $0.20 Quarter 3 $0.50 Quarter 4 $0.50 Quarter 5 $1.00 Quarter 6 $1.00 After Quarter 6, you expect quarterly dividends to grow at a long-run rate of 1% per quarter. The annual required return on the stock is 21.55%. What should the stock price be today?
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