Pine Grove, Inc., is a thriving young company and it expects no dividends over the next 3
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Pine Grove, Inc., is a thriving young company and it expects no dividends over the next 3 years because the company needs to reinvest its earnings to fund its various projects. The company will pay a $3.1 per share dividend in 4 years and will increase the dividend by 8 percent per year thereafter. If the required return on this stock is 10.8 percent, the current share price should be $_______. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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