ATX Corp. just paid a dividend of $1.30 per share. The dividends are expected to grow at 30 percent for the next 7 years and then level off to a growth rate of 7 percent indefinitely. If the required return is 11 percent, what is the price of the stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price $

Answer rating: 100% (QA)

As per the two stage growth model stock price is equal to the sum of present value of all dividend... View the full answer