Los Polos Chicken is not expected to pay any dividends over the next three years. After three years, the company plans to initiate a dividend of $2.50 per share. Once the dividend is initiated, it is expected to grow at a constant rate of 6 percent per year indefinitely. The required rate of return on the company's stock is expected to remain constant at 9 percent. Calculate the current stock price?

Answer rating: 100% (QA)

The current stock price of Los Polos Chicken can be calculated using the ... View the full answer