Mack Industries just paid a dividend of $$3$ per share $($D$0=$ $$3).$ Analysts expect the companys dividend to grow $10$ percent this year $($D$1=$ $$3\mathrm{.}3)$ and $5$ percent next year. After two years the dividend is expected to grow at a constant rate of $3$ percent. The required rate of return on the companys stock is $13$ percent. What should be the companys current stock price?

Answer rating: 100% (QA)

To calculate the current stock price of Mack Industries we can use the dividend discount model DDM a... View the full answer