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You think GOOG might start paying dividend next year. The first dividend will be $1 a share. The company will likely increase dividend quickly the
You think GOOG might start paying dividend next year. The first dividend will be $1 a share. The company will likely increase dividend quickly the first 5 years, at the rate of 25% each year. Then, you think the company will slow dividend growth to around 18% a year for another 5 years. After year 11, the dividend growth rate will stabilize to 10% a year. If the required return for GOOG is 12.8%, what should the price of GOOG today?
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