NU Inc. is not paying any dividends now. However, NU Inc. is planning to start paying annual dividends 3 years from now. The first dividend will be $2. The growth rate will be 6% for 6 years and then 2% indefinitely. What is the stock price now if the discount rate is 9%? (Keep two decimal places)

Answer rating: 100% (QA)

To calculate the present value of the future dividend payments and determine the stock price now we ... View the full answer