Consider a stock that is not yet paying dividends. You expect the company to begin paying dividends
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Consider a stock that is not yet paying dividends. You expect the company to begin paying dividends in 6 years. The first dividend (D6) will be $1. For two years after that, dividends will increase by 37% each year. After that dividends will increase at a rate of 2.5% per year forever. The required return of this stock is 12.5%.
Related Book For
Financial Algebra advanced algebra with financial applications
ISBN: 978-0538449670
1st edition
Authors: Robert K. Gerver
Posted Date: