Goodfellas Personal Finance just paid a dividend of $20. Its dividends are expected to grow at a 50% annual rate for each of the next two years, and then settle down to a steady state 6% into the foreseeable future. If investors require a 15% rate of return, what should a share of Gooodfellas' stock sell for?

Answer rating: 100% (QA)

To calculate the price of a share of Goodfellas stock we can use the dividend discount model DDM The ... View the full answer