Question: Please use EXCEL in details how you solve it. Assume you require 11.0% return. A company has common stock which just paid a dividend of
Please use EXCEL in details how you solve it.
Assume you require 11.0% return. A company has common stock which just paid a dividend of $2.07 (at moment 0). Dividends forecast to grow 69% for the upcoming five years (years 1-5). After year 5, the growth of the stock's dividends is expected to change to a sustainable rate of 3.1% forever. What is price is predicted for this stock at the end of year 5 (i.e., what is the terminal value)?
Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234
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