Jasper, Inc. just paid an annual dividend of $10.00 per share. The next two annual dividends are expected to grow 21% per year, and annual dividends thereafter are expected to grow at 4% per year, forever. If the firm's cost of equity capital is 15% per year, what should be the price today of one share of stock? Express your answer rounded and accurate to the nearest penny (i.e., two decimal places). Do not include a dollar sign.

Answer rating: 100% (QA)

To calculate todays stock price you need to use the Gordon Growth Model The formu... View the full answer