Question: A stock is not expected to pay a dividend over the next four years. Five years from now, the company anticipates that it will establish
A stock is not expected to pay a dividend over the next four years. Five years from now, the company anticipates that it will establish a dividend of $ ?per share ie ?D ?Once the dividend is established, the market expects that the dividend will grow at a constant rate of ?percent per year forever. The riskfree rate is ?percent, the company's beta is ?and the market risk premium is ?percent. The required rate of return on the company's stock is expected to remain constant. What is the current stock price
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