Forever 21 is expected to pay an annual dividend of $3.28 per share in one year, which
Fantastic news! We've Found the answer you've been seeking!
Question:
Forever 21 is expected to pay an annual dividend of $3.28 per share in one year, which is then expected to grow by 4% per year. The required rate of return
is 14%.
a. What is the current stock price?
b. What is the current stock price if the annual dividend of $3.28 has just been paid? (i.e. paid yesterday or earlier today)
c. What is the current stock price if the annual dividend of $3.28 his about to be paid? (i.e. paid tomorrow or later today)
Posted Date: