You are considering investing in ICI. Suppose ICI currently paid $3 dividend and enjoying super growth and expected to pay 30% more in dividends each year for 3 years. After these three years the dividend growth rate is expected to be 2% per year forever. If the required return for ICI common stock is 11%, what is a share worth today?

Answer rating: 100% (QA)

6706 Explanation first we need to determine the price of ICI stock in 3 years ... View the full answer