A companys next dividend will be $3.00. Its dividend growth rate is expected to be constant at
Question:
A company’s next dividend will be $3.00. Its dividend growth rate is expected to be constant at 20.00% for 2 years and 25% for two more years after which dividends are expected to grow at a rate of 8.00% forever. The risk-free rates are 4% (T-Bond) and 2.5% (T-Bills), the Market return is 7.00% and the beta is 1.82. What is the current stock price?
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted: