You expect the following dividend distribution policy for SUPER Company: [1] The company will pay cash dividend $1 per share (per year) in next two years; [2] At the end of the third year, the company will pay cash dividend $2 per share; [3] Starting from the end of the third year, the company will continue to pay cash dividend at a constant growth rate of 5% p.a. Given the business nature and capital structure of the company, the required rate of return for SUPER Company is 10% 

What is the current theoretical stock price for SUPER Company?

Answer rating: 100% (QA)

To calculate the current theoretical stock price for SUPER Company we can use the dividend discount ... View the full answer