NVIDIA (NVDA) Corporation just paid a dividend of $0.16 a share. Wall Street analysts expect that...

 

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NVIDIA (NVDA) Corporation just paid a dividend of $0.16 a share. Wall Street analysts expect that the dividend will grow at 95.05% per year for the next five years. After five years, the growth rate will fall to 6% in perpetuity. Assume a discount rate of 8%. a. Using the above assumptions, what is your estimated price per share for NVIDIA stock? b. What would the dividend need to be in year 1 to justify the current stock price of $726 per share? NVIDIA (NVDA) Corporation just paid a dividend of $0.16 a share. Wall Street analysts expect that the dividend will grow at 95.05% per year for the next five years. After five years, the growth rate will fall to 6% in perpetuity. Assume a discount rate of 8%. a. Using the above assumptions, what is your estimated price per share for NVIDIA stock? b. What would the dividend need to be in year 1 to justify the current stock price of $726 per share?