Question
You find a stock that just paid a dividend of $2 that is expected to grow at 30% per year for the next four years,
You find a stock that just paid a dividend of $2 that is expected to grow at 30% per year for the next four years, then at a constant rate of 6%. If you require a 12% return, what should be the current price of the stock?
A. $63.40 B. $77.91$ C. $75.91 D. $93.61
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International Finance The Markets And Financial Management Of Multinational Business
Authors: Maurice D. Levi
3rd Edition
0070376875, 978-0070376878
