Question

Carbohydrates Anonymous (CA) operates a chain of weight-loss centers for carb lovers. Its services have been in great demand in recent years and its profits have soared. CA recently paid an annual dividend of $1.35 per share. Investors expect that the company will increase the dividend by 20 % in each of the next three years, and after that they anticipate that dividends will grow by about 5 % per year. If the market requires an 11 % return on CA stock, what should the stock sell for today?


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  • CreatedMarch 26, 2015
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