Pera Inc does not currently pay dividends. The company will start with an annual dividend of $11 at the end of year 3 and will pay the same amount each year untill year 9. Thereafter, it will increase the dividends by 3% per year forever. If the required rate of return on this stock is 9% what is the price of this stock today?

Answer rating: 100% (QA)

To calculate the price of the stock today we can use the Dividend Disc... View the full answer