Question: Hi, need help on this question! thanks for your time! (will tive review) MDK, Inc. is a high growth firm that has never paid a
Hi, need help on this question! thanks for your time! (will tive review)
MDK, Inc. is a high growth firm that has never paid a dividend. The company just issued a press release stating that next year they plan on paying an annual dividend of $0.46. They also stated that dividends are expected to increase by 38% a year for each of the following 3 years and then increase by 8% annually thereafter forever. The required rate of return on this stock is 17%. What is the expected price per share of MDK stock 14 years from now? Select one: O a. $3.55 b. $29.00 c. $16.58 d. $31.32 e. $39.45
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
