Question: Worldwide Inc.has decided to acquire another firm by purchasing the firm's outstanding stock.Analysts forecast a period of2years of extraordinary growthof 19%,followed by1year of unusual growth
Worldwide Inc.has decided to acquire another firm by purchasing the firm's outstanding stock.Analysts forecast a period of2years of extraordinary growthof 19%,followed by1year of unusual growth of 10%,and finally a normal(sustainable)growth rate of5.4%annually indefinitely.The last dividend was D0=$1.00per share and the required return is8.6%.What is D4(i.e.,the dividend expected at end of period4)? Answer to3decimal places.
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