Company A has an EPS of $5.95 today. The company is currently not paying dividends. They expect to grow the earnings by 32% for the next 5 years. After 5 years, they will start paying 73% in dividends. The cost of capital is 10.55. What should be the price of the stock today if they expect the dividends to grow by 7 after year 5?

Answer rating: 100% (QA)

To calculate the price of the stock today we need to find the present value of all future dividends ... View the full answer