MBC Inc. just paid a dividend of $12.00 per share but plans to pay $1.00 per share
Fantastic news! We've Found the answer you've been seeking!
Question:
MBC Inc. just paid a dividend of $12.00 per share but plans to pay $1.00 per share every quarter from the next quarter up till the last quarter of year 5, after which the dividends will be paid $3.00 per share every year forever. Dividends are paid at the end of period. The required rate of return on this stock is 10%.
a. What is the current price of MBC's common stock?
b.What is the expected stock price three years from today?
c. What is the expected stock price 10 years from today?
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Posted Date: