Kenneth Cole Productions (KCP) suspended its dividend at the start of 2009 and as of the middle of 2012, has not reinstated its dividend Suppose you do not expect KCP to resume paying dividends until July 2014 You expect KCP 's dividend in July 2014 to be $1 00 (paid annually), and you expect it to...

Present value of stock Value of next years dividen ...

Kenneth Cole Productions (KCP) suspended its dividend at the start of 2009 and as of the middle

Question:

Kenneth Cole Productions (KCP) suspended its at the start of 2009 and as of the middle of 2012, has not reinstated its Suppose you do not expect KCP to resume paying dividends until July 2014. You expect KCP's in July 2014 to be $1.00 (paid annually), and you expect it to grow by 5% per year thereafter. If KCP's equity is 11%, what is the value of a share of KCP in July 2012?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Dividend
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...