CX Enterprises has the following expected dividends: $1.04 in one year, $1.17 in two years, and...

 

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CX Enterprises has the following expected dividends: $1.04 in one year, $1.17 in two years, and $1.27 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 $1.27 and so on). If CX's equity cost of capital is 11.8%, 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: $1.04 in one year, $1.17 in two years, and $1.27 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 $1.27 and so on). If CX's equity cost of capital is 11.8%, what is the current price of its stock? The price of the stock will be $ (Round to the nearest cent.)

Answer rating: 100% (QA)

Heres how to calculate the current price of CX Enterprises stock 1 Present Value of Perpetuity Growt... View the full answer