Question: CX Enterprises has the following expected dividends: $ 1 . 0 9 in one year, $ 1 . 2 5 in two years, and $

CX Enterprises has the following expected dividends: $1.09 in one year, $1.25 in two years, and $1.35 in three years. After that, its dividends are expected to grow at 4.1% per year forever (so that year 4's dividend will be 4.1% more than $1.35 and so on). If CX's equity cost of capital is 12.1%, what is the current price of its stock?
The price of the stock will be $,.(Round to the nearest cent.)
 CX Enterprises has the following expected dividends: $1.09 in one year,

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!