Webex Inc wil pay a dividend of $1.00 at the end of this year. Thereafter, dividends...

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Webex Inc wil pay a dividend of $1.00 at the end of this year. Thereafter, dividends will grow at the rate of 25% per year for 2 years, and then drop to 18% for 1 year, before settling at a growth rate of 10% indefinitely. If you need a 16% return to invest in this stock, how much will you pay for it? Webex Inc wil pay a dividend of $1.00 at the end of this year. Thereafter, dividends will grow at the rate of 25% per year for 2 years, and then drop to 18% for 1 year, before settling at a growth rate of 10% indefinitely. If you need a 16% return to invest in this stock, how much will you pay for it?

Answer rating: 100% (QA)

Heres how to calculate the current price of the Webex stock considering the future dividend stream a... View the full answer