Question: everything is given in the question. please don't do it with excel. thank you. the discount rate is 18% SuperGrowth is a relatively young tech
SuperGrowth is a relatively young tech company. It is going through a period of high growth and has thus decided not to pay any dividends until the end of year 6. At the end of year 6 it will pay a dividend of $2. This dividend will grow at a rate of 25% for the next 4 years. After that SuperGrowth pledges to maintain a constant 5% growth rate in dividends, forever. How much will you pay for a share of SuperGrowth today
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
