DiSanteand Company is a small start-up firmthat will institute a dividendpaymenta$0.25dividendforthe first time at the end of this year. The company expects rapid growth over the next four years and will increase its dividend to $0.50,then to$1.50,and then to$3.00beforesettlingintoaconstant growth dividend pattern with dividends growing at 5%every year. If you believe thatDiSanteand Company will deliver the dividend pattern and youdesirea13% return on your investment, what prices should you pay for this stock?

Answer rating: 100% (QA)

To determine the prices you should pay for the stock of DiSante and Company we can use the dividend ... View the full answer