Question: Show the formula and the answer. Roadrunner Enterprises is expected to grow its dividends and earnings at various rates. The company just paid a cash
Roadrunner Enterprises is expected to grow its dividends and earnings at various rates. The company just paid a cash dividend of $3,00 per share. The company expects to grow its dividend at 16% for the next two years, then at 14% for the following three years, after which the company expects to grow at a constant rate of 10% per year indefinitely The required rate of return on Roadrunner's common stock is 16% Show all work No work, no points! What are the dividende in years through 5? What is the Fair Market value of the stock at the end of year ? What is the Fair Market value of the stock now? w the stock now trados at $80 per share, is the stock rich or cheap
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