Question: Tattletale News Corp has been growing at a rate of

Tattletale News Corp. has been growing at a rate of 20% per year, and you expect this growth
rate in earnings and dividends to continue for another 3 years.
a. If the last dividend paid was $2, what will the next dividend be?
b. If the discount rate is 15% and the steady growth rate after 3 years is 4%, what should the stock price be today?
Growth rate. ....... 20.00%
Last dividend paid... $2.00
Discount rate.......... 15.00%
Steady growth rate (b). 4.00%

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  • CreatedSeptember 19, 2013
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