Company A expects to pay $19,000,000 in dividends on their 10,000,000 shares outstanding next year. The growth rate is 25% for the next 4 years. After year 4, they expect a retention rate of 75% and a return on equity of 12%. The required return is 15%.What is the current price of the stock?

Answer rating: 100% (QA)

To calculate the current price of the stock we need to first calculate the expected dividends for th... View the full answer