Baldwin Corp. has just paid a dividend of $2.00. Over the next two years, this dividend is expected to grow by 20% per year. After two years, dividend growth is expected to stabilize at 10%. If the required rate of return on Baldwin's stock is 12%, what should the price of Baldwin's stock be today?

Answer rating: 100% (QA)

SOLUTION Todays price of Baldwin Corps stock can be calculated using the Gordon Growth Formula P D0 ... View the full answer